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LG Household to acquire local cosmeceuticals maker CNP Cosmetics

All Headlines 17:24 October 22, 2014

By Nam Kwang-sik

SEOUL, Oct. 22 (Yonhap) -- South Korea's cosmetics and beverage maker LG Household & Health Care Ltd. said Wednesday that it has signed a 54.2 billion won (US$51.5 million) deal to buy an 86 percent stake in CNP Cosmetics Co., a local cosmeceuticals firm.

The acquisition is aimed at stepping up its business by expanding into the cosmeceutical market that is fast becoming a new growth engine, LG Household said in an e-mailed statement.

Cosmeceuticals, a newly coined word combining cosmetics and pharmaceuticals, refers to products that have medical or drug-like benefits.

LG Household already owns such brands as CAREZONE and DERMALIFT.

CNP Cosmetics has been leading the local cosmeceutical market, selling about 120 kinds of such products. It posted an operating profit of 4.8 billion won in 2013 with its sales reaching 24 billion won, the company said.

The global cosmeceutical market is estimated at around 35 trillion won and is growing two times faster than the conventional skin care industry, LG Household said.

LG Household has Coca Cola Beverage Co., Haitai Beverage Co. and South Korea's second-largest cosmetics firm THEFACESHOP Ltd. under its wing.

In mid-June, LG Household dropped its plan to take over U.S. cosmetics firm Elizabeth Arden Inc. who had announced a large-scale restructuring plan.

LG Household's regulatory filing showed it recorded 1.23 trillion won in sales and 150.2 billion won in operating profit in the third quarter.

LG Household's cosmetics sector, in particular, logged 48 billion won in sales in the third quarter, up 22.6 percent from a year earlier, and 63.9 billion won in operating profit, up 24.4 percent.

Shares of LG Household dropped 0.73 percent Wednesday to close at 542,200 won on the Seoul bourse, with the benchmark KOSPI rising 1.13 percent.

ksnam@yna.co.kr
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