[THE INVESTOR] Korean cosmetics maker Dewytree has sold its 47 percent stake to local private equity firm EastBridge Partners in its latest push for global expansion, especially the crucial Chinese market, according to industry sources on May 16.
Based on the firm’s market value of about 75 billion won (US$69 million), the PEF reportedly purchased shares worth 35 billion won. It has also secured the rights to appoint three board members of the total six.
A company official also confirmed the deal but declined to further elaborate.
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“We have already been selling our products through some drug stores in Hong Kong. By partnering with EastBridge, we plan to expand our presence in the Asian market,” the official told The Investor.
Dewytree was launched in 2010 by Moon Si-un, a cosmetics expert who worked for the marketing, research and development division of LG Household & Health Care, one of the nation’s top cosmetics firms. Its sales have soared recently largely due to actor Jung Hae-in, its long-time commercial model who is fast gaining popularity among K-pop fans as he currently stars in the Korean drama “Something in the Rain.”
Dewytree is especially pinning high hopes in China where Jung has already topped major popularity charts, including those of Weibo and Baidu. EastBridge is also known to have a strong retail network in China, sources said.
By Song Seung-hyun (firstname.lastname@example.org