Cosmax in talks to buy US firm NuWorld Beauty for US$100m
PUBLISHED :October 10, 2017 - 16:00
UPDATED :October 11, 2017 - 15:31
[THE INVESTOR] Cosmax, Korea’s leading cosmetics original development manufacturer, will acquire its US rival NuWorld Beauty for 120 billion won (US$100 million), according to news reports on Oct. 10.
KOSPI-listed Cosmax has reportedly signed a deal to take over the entire stake in the New Jersey-based cosmetics ODM firm.
Cosmax said in a regulatory filing that the talks were ongoing, but that nothing has been finalized. A NuWorld Beauty official, however, denied the reports.
Cosmetics products produced by Cosmax
Local cosmetics developers have been involved in M&As for a while now, including Cosmax’s crosstown rival Kolmar Korea, which acquired Process Technologies and Packaging, another ODM company based in the US in 2016. This was the result of a joint effort with Wormser Corp., a New Jersey-based contract manufacturer of personal care products.
Hit by the persisting diplomatic tension between Seoul and Beijing over the former’s deployment of THAAD missile system, Korean cosmetics manufacturers are increasingly seeking ways to expand in markets outside of China, such as Southeast Asia and Americas.
Cosmax is a key producer for global beauty giants such as Estee Lauder and L’Oreal. In the second quarter of this year, its operating profit fell 21.2 percent to 14.32 billion won on-year, while revenue declined 8.4 percent to 9.5 billion won.