Unilever Acquires Korean Makeup Company for $2.7 Billion

Global beauty company Unilever acquires Carver Korea, a Korean makeup brand that became famous through its AHC line, for 3 trillion won (US$2.7 billion). It means that amid the tension of THAAD, domestic beauty brands have taken a direct hit, and beauty brands with technical know-how and specialty products are becoming case studies and showing off their potential.

Unilever revealed on September 26 that it acquired a 60.39% majority of stocks in Carver Korea, a leader of the Asian skincare market, from Bain Capital Private Equity and Goldman Sachs for 2.27 billion EUR (approx. 3.61 trillion won). Unilever assessed that Carver Korea has currently a stable revenue structure and product portfolio, and has a high potential of extending into the global market.

Investment banks (IB) explained that Unilever’s acquisition of the AHC line for 16 times its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of EUR 137 million can be interpreted as a plan for the second takeoff in the Chinese market which is currently suffering stagnation. Goldman Sachs and Bain Capital Private Equity together gained a 2.6 trillion won (US$2.3 billion) profit, seven-fold profit as they had acquired Carver Korea in June of last year for 430 billion won (US$387 million).

Meanwhile, Unilever’s acquisition of Carver Korea has set a new record for the largest merger and acquisition of domestic consumer goods, surpassing LG Household & Health Care’s merger and acquisition of The Face Shop in 2010 for 446.7 billion won (US$402 million).