Swiss retailer Migros announced on Monday that L'Oréal is to acquire the South Korean subsidiary of its cosmetics division Mibelle Group.
The acquired entity, called Gowoonsesang Cosmetics, markets the Dr.G brand, one of the best-known beauty creams in the country.
Gowoonsesang, founded in 1998, offers a range of cosmetics specially designed for sensitive skin. The Korean company was acquired by Mibelle Group in 2018.
In addition to Dr.G, the company owns the vividraw, Lab.it and Heal us brands, and employs some 200 people in South Korea and a dozen in China, who will join the L'Oréal teams.
It exports to more than 10 Asia-Pacific countries, as well as to the United States.
While the terms of the sale, particularly financial, have not been disclosed, Migros indicates that the transaction should be finalized in the next few months following approval by the regulatory authorities.
In a press release, Migros - which is seeking to refocus on its core business - indicates that negotiations for the sale of the remainder of the Mibelle Group are still ongoing, but that potential buyers are showing 'great interest'.
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L'Oréal is the world leading cosmetic group. The group offers skincare products (39.9% of sales), makeup products (19.7%), haircare products (15.4%), fragrances (12.6%), hair colouring products (8.3%) and other (4,1%). Net sales break down by family of products as follows:
- consumer cosmetics (36.9%): L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie Niely, Dark and Lovely, Mixa, MG and Carol's Daughter brands;
- luxury cosmetics (36.2%): Lancôme, Kiehl's, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Biotherm, Helena Rubinstein, Shu Uemura, IT Cosmetics, Urban Decay, Ralph Lauren, Mugler, Viktor&Rolf, Valentino, Azzaro, Prada, Takami, A?sop, etc.;
- active cosmetics (15,6%): La Roche-Posay, Vichy, CeraVe, SkinCeuticals, Skinbetter Science, etc.;
- professional products (11,3%): L'Oréal Professionnel, Kérastase, Redken, Matrix and PureOlogy brands.
Products are marketed through mass distribution and distance selling, selective distribution, hair salons and pharmacies.
At the end of 2023, L'Oréal has 37 production sites worldwide.
Net sales are distributed geographically as follows: Europe (31.6%), North America (27%), North Asia (25.9%), Asia/Pacific/Middle East/Africa (8.4%) and Latin America (7.1%).