LG Household mulling acquiring local cosmetic firm

By Nam Kwang-sik
SEOUL, Nov. 18 (Yonhap) -- South Korea's LG Household & Health Care Ltd. said
Wednesday that it is considering taking over The Faceshop Korea Co., the
country's third-largest cosmetics producer, to sharpen its competitive edge in
the local cosmetics market.
"However, details of the acquisition have yet to be decided," LG Household said
in a regulatory filing.
The deal between second-ranked LG Household and The Faceshop is expected to pose
a threat to 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.
The No.3 cosmetics manufacturer was established in 2003. Affinity Equity
Partners, a private equity fund of Hong Kong, holds a 70 percent stake in the
company in 2005, while Jung Woon-ho, the founder of the company, owns the
remainder. The Faceshop Korea has about 700 stores across the country.
In July last year, Jung sought to sell his stake in The Faceshop for at least
$400 million to U.S-based private equity fund Carlye Group, but the deal failed
due to differences over the acquisition price.
ksnam@yna.co.kr
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