Bain, Goldman Sachs to acquire Korea’s Carver

Financial details and ownership stakes were not disclosed, but AVCJ understands the combined investment to be about KRW400 billion ($350 million). The transaction is expected to drive domestic growth and stimulate overseas expansion for the company, which currently markets about 1,000 products across Korea, China and the US. Carver founder and chairman Lee Sang-rok will continue to hold a minority stake and participate in day-to-day management.

The deal represents Bain's first investment in Korea. It follows a period of building Korean expertise into the firm's Asian team and targeting investments with the ability to leverage the international growth potential of domestic companies. The acquisition is expected to benefit from rapidly expanding overseas demand for Korean beauty products, particularly in China, where Korea is the second-largest supplier of cosmetics after France.

"Korea is home to one of the most sophisticated cosmetics markets in the world and the global demand for the country's beauty products is reaching new heights," Jeff Hyun Seok Kim, a managing director at Goldman said in a statement. "Our investment in Carver's innovative and talented founder and management team exemplifies Goldman Sachs' aim to partner with Korean corporate leaders who are able to develop and offer world-class products."

Founded in 1999, Carver focuses on skincare products, including its flagship brand AHC, or Aesthetic Hydration Cosmetics. The company employs a diversified distribution strategy, with both online and brick-and-mortar sales outlets. As of May 2016, sales for the year exceeded KRW150 billion, representing a year-on-year increase of more than 200% for the period.

Bain is planning to extend this marketing growth in China, the US and Southeast Asia. The GP's parent firm closed a $3 billion Asia fund last year with a remit to target buyouts in the $400-500 million range across China, Japan, India, Australia, Southeast Asia and Korea. Goldman remains one of the largest foreign investors in Korea, claiming to have committed more than $2.5 billion in the country since 1999.

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• Topics
• North Asia
• Consumer
• Expansion
• Buyout
• Bain Capital Asia
• Goldman Sachs
• South Korea