LG Household completes acquisition of The Faceshop

SEOUL, Jan. 17 (Yonhap) -- South Korea's LG Household & Health Care Ltd. said
Sunday that it has completed its acquisition of The Faceshop Korea Co., the
country's third-largest cosmetics producer, for 420 billion won (US$363 million)
to boost its competitive edge in the local cosmetics market.
LG Household signed the deal with The Faceshop on Nov. 24 last year to purchase a
90 percent stake, or 1.93 million shares, in the cosmetics producer.
The acquisition price amounted to 340 billion won because The Faceshop held a
reserve fund of 80 billion won, LG said.
The No. 3 cosmetics manufacturer, established in 2003, has about 700 stores
across the country. The deal between second-ranked LG Household and The Faceshop
is expected to increase competition against industry leader Amorepacific Corp.
Amorepacific recorded 1.27 trillion won (US$1.1 billion) in sales last year,
followed by LG Household with 534.1 billion won and The Faceshop Korea with 235.1
billion won.
LG earlier said the stake purchase is expected to create a synergy effect by
integrating the third-largest cosmetics maker's overseas business into that of LG
Household.
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