LG Household buys The Faceshop for 420 bln won

By Nam Kwang-sik
SEOUL, Nov. 24 (Yonhap) -- South Korea's LG Household & Health Care Ltd. said
Tuesday that it has decided to buy 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 purchased a 90 percent stake or 1.93 million shares in the cosmetics
producer, the company said in a regulatory filing.
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.
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.
ksnam@yna.co.kr
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