VIG invests $129m in Korean eyewear retailer
VIG Partners has agreed to pay KRW137.5 billion ($129 million) for an approximately 42% stake in Korean beauty contact lens and fashion sunglasses retailer Star Vision.
According to a statement, the transaction includes the acquisition of KRW33 billion of convertible preferred shares in the company. VIG will have the option to take a controlling position by fully converting these shares.
Star Vision was founded in 2007 as an online retailer focused exclusively on beauty lenses and expanded into brick-and-mortar operations by 2010. It now markets branded contact lenses in 280 franchise shops and branded sunglasses via 390 showrooms and various commercial outlets across Korea. This retail network is said to be the largest of its kind in the country.
The growth has been attributed in part to a 21% per year expansion rate in the local beauty lens market during the past five years, which is almost twice as fast as the growth of the overall contact lens market. Revenue came to KRW58.1 billion during 2017 while operating profit totaled KRW18.2 billion.
The company has begun marketing its products globally but has focused primarily on a domestic agenda to date. Future growth is planned to come from product diversification and further internationalization. This effort is expected to leverage the marketability of Korean cultural products overseas.
“Star Vision is a unique company which has pioneered a new market of beauty lenses with colorful designs and also successfully launched its own sunglasses brand,” Chulmin Lee, a partner of VIG, said. “While reviewing investment opportunities related to ‘K-fashion’ and ‘K-beauty,’ VIG identified Star Vision’s dominant brand and retail presence in Korea as well as its outstanding growth potential.”
The investment marks the sixth deal from VIG’s third fund, which closed at KRW700 billion in early 2017. The Seoul-based GP, previously known as Vogo Investment, focuses on control acquisitions in sectors that have strong and stable growth potential related to affluent and sophisticated consumer profiles. Recent activity in Korea’s beauty space includes a $127 million investment in skincare products maker Press & Converting.
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