The chief executive officers of South Korean cosmetics firm Too Cool for School have decided to sell their stakes, according to industry sources July 17.
Shim Jin-ho and Jo Hye-shin, the two co-CEOs, respectively hold stakes in the company of 75.76 percent and 18.18 percent. Nomura Securities has been chosen to manage the deal.
According to sources, Nomura recently sent out an investment prospectus containing detailed information about the cosmetics company to a few private equity firms and foreign cosmetics businesses.
Industry watchers estimate its corporate value at around 300 billion won ($53.95 million) due to its high growth potential in overseas markets. It currently has more than 23,000 outlets worldwide.
Too Cool for School was originally a private brand line of local cosmetics retailer Todakosa, which Shim and Jo established in 2000. In 2010, the two decided to shutter Todakosa and go with the Too Cool for School brand, opening shop in Seoul’s trendy Hongdae area.
Too Cool for School became popular by promoting unique designs and its flagship shading powder. Despite the downfall of the Korean budget cosmetics industry as a whole, in 2018 the company’s sales rose 28 percent on-year to hit 67.8 billion won. Operating profit reached 4.6 billion won.
By Song Seung-hyun (firstname.lastname@example.org)