April 20, 2024

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[THE INVESTOR] Kolmar Korea, South Korea’s original development manufacturing cosmetics maker, will accelerate its entry into the North American market with its recent acquisition of a US firm, the company’s CEO said on Nov. 9.

Kolmar expects to diversify its business model by integrating customer network, production platform as well as research and development capabilities of Process Technologies & Packaging, it bought in September. 

The US-based firm has provided cosmetics for global brands including L’Oreal, Coty and Shiseido,

“Forging partnerships or striking acquisition deals with companies that have an upper hand in the targeted market seems to be an effective way to lift global sales,” Kolmar CEO Yoon Sang-hyun said during a press conference held in Seoul.

In September, Kolmar bought a 51 percent stake in the Pennsylvania-based firm for 17 billion won (US$15.1 million).

The deal was made through a joint partnership with Wormser Corp., a New Jersey-based contract manufacturer of personal care cosmetics and fragrances, which agreed to take over a 49 percent stake in PTP.

“The takeover deal enabled Kolmar to expand relations with global brands while strengthening color cosmetics business which has been lagging behind skincare products,” Yoon said.

The Korean company expects to maximize synergy by combining PTP’s color makeup technology, Korea Kolmar’s expertise in basic skincare products and Wormser’s sales network.

Yoon said he expects PTP will generate sales of 150 billion won (US$130.71 million) in 2017, a big jump from around 50 billion won of annual sales in recent years.

“We will seek to secure competitive edge in the global cosmetics ODM market by advancing into the North and South American markets,” he said.

In 2015, Kolmar Korea’s sales increased 16 percent to 535.8 billion won from a year ago and its operating profit surged 29.6 percent to 60.7 billion won.

By Park Han-na (hnpark@heraldcorp.com)