VIG pays $127m for majority stake in Korean skincare player
VIG Partners has agreed to buy a 73% stake in Press & Converting, a Korea-based manufacturer of facial masks primarily used for skincare, in a deal worth KRW146 billion ($127 million).
According to AVCJ Research’s records, the investment will facilitate an exit for HES Capital Partners, which acquired a minority interest in the company last year for KRW40 billion. C.J. Son, founder and CEO of Press & Converting, will become the second-largest shareholder post-transaction, and retain his leadership role.
Established in 2005, Press & Converting serves Korean brands and manufacturers in sourcing, designing and processing various types of facial mask sheets. Its client base of more than 300 companies accounts for 70% of the market. Annual production capacity is approximately 1.8 billion sheets.
The company has recorded top-line growth of 35% over the past three years, reflecting the domestic and international appeal of Korean cosmetics. Revenue came to KRW91.9 billion last year, with operating income reaching KRW23 billion, according to a statement.
“The company has been able to dominate its sector by continuously developing new fabric technology in the fast-growing and ever-changing facial mask market. We aim to build upon its current competitiveness by exploring a comprehensive choice of options, from diversifying into new product categories to expanding its presence overseas,” said Chulmin Lee, managing partner at VIG.
This will be the third investment from the private equity firm’s third fund, which closed in February at the hard cap of $600 million. The other two portfolio companies are funeral service provider Jo-Un Life and used car retailer and maintenance business Autoplus. Last month, VIG also made a partial exit from Fund II investment Samyang Optics, which listed in Korea.
Other recent private equity activity in Korea’s beauty industry includes IMM Investment’s $330 million of acquisition of Able C&C and CDIB Capital’s investment in L&P Cosmetic, a producer of high-end facial masks. Bain Capital Private Equity – which bought Carver Korea last year in conjunction with Goldman Sachs – also added Hugel, a manufacturer of botox among other skincare products, to its portfolio.
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