L’Oreal to acquire 70% stake in Style Nanda
[THE INVESTOR] Korea’s budget fashion and cosmetics brand Style Nanda will sell its 70 percent stake to French beauty giant L’Oreal, according to industry sources on April 10.
The deal price is estimated to reach almost 400 billion won (US$37.21 million).
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Style Nanda’s deal manager UBS reportedly named L’Oreal as the preferred bidder. Big name private equity firms, including Carlyle Group, Kohlberg Kravis Roberts and CVC Capital, participated in the bidding.
The firm’s CEO and founder Kim So-hee who currently owns the entire stake will remain as a major shareholder with 30 percent stake even after the stake sale. She is likely to serve as creative director for the brand.
Style Nanda, launched in 2005, started as a fashion brand but more recently it is focusing on cosmetics business. During the first half of 2017, almost 70 percent of the total sales worth 78 billion won came from its budget cosmetics brand 3CE, one of the most popular beauty brands in China.
Taking advantage of the popular K-beauty brand, L’Oreal is expected to seek a bigger presence in the soaring Chinese beauty market.
By Song Seung-hyun(email@example.com)