IMM to buy Korean fashion e-commerce business

The GP will pay KRW61.2 billion ($54 million) for a 60% interest in W Concept, according to a filing. ISE will retain 20%. The investment will come from IMM’s third fund, which closed in October 2016 at approximately KRW1.25 trillion ($1.15 billion).

W Concept, which was created in 2006, operates in Korea, China, and the US. The brand ethos is said to be drawn from culture, travel, art, and fashion. The W Concept e-commerce platform also stocks a range of third-party brands.

It is one of 18 brands that ISE owns or to which it holds the exclusive rights. The parent company has logistics, payment and product sourcing capabilities spread across the US, UK, Italy, China, and Japan, as well as in Korea. In addition, it operates 120 online and offline sales channels.

ISE generated revenue of KRW78.6 billion in 2016, up from KRW56.1 billion the previous year. Over the same period, it recovered from a net loss of KRW895.3 million to record a net profit of KRW29.5 million. W Concept contributed KRW1.76 million in income last year.

This is not IMM’s first foray into the world of Korean cultural assets – from music to TV dramas to beauty products – for which there is international as well as local demand. Most recently, the private equity firm paid $330 million for a majority stake in cosmetics business Able C&C through a tender offer and the acquisition of shares from the founder.

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• Topics
• North Asia
• Buyouts
• Consumer
• South Korea
• IMM Investment