Intercos Group announced the acquisition of the remaining 50% of the joint venture Shinsagae Intercos Korea Inc. from Shinsagae International Inc. Following this transaction, Intercos will hold 100% of Intercos Korea.
WHO: Founded in 2015, Shinsegae Intercos Korea is a joint venture between Shinsegae International and Intercos in original development manufacturing and original equipment manufacturing business. It has been manufacturing Shinsegae International’s cosmetics brands Yunjak and VIDI VICI and is planning to maintain the supply and partnership, regardless of the stake sale.
Shinsegae International Inc. is the fashion arm of South Korea’s retail giant Shinsegae Group.
WHY: The operation allows Intercos to create significant synergies with the rest of the Group and is in line with its strategy to further invest in Korea, a strategic hub for Asia.
IN THEIR OWN WORDS: “We are thankful for this successful partnership and ready to seize new opportunities in the Korean market. Today begins a new phase for us in Korea, where Intercos, as an independent player, will be able to fully exploit significant synergies with the rest of the Group and further invest in this strategic hub for Asia,” said Dario Ferrari, founder and Executive Chairman of Intercos Group. “We are very happy and committed to maintain the collaboration with a prestigious player such as Shinsegae, and we believe that this move will allow both Companies to focus on their respective core business in order to capture any market potential.”
“Partnership with Intercos was a meaningful opportunity for Shinsegae to enhance its cosmetics business. Going forward, Shinsegae intends to focus on further developing its brands and investing in new brands,” said Gil-Han Lee, CEO, Shinseage International Inc.
- Shinsegae International divested its equity holding in its joint venture with Intercos Co. for 17.22 billion won ($14.4 million). With the acquisition, Intercos’ holding in the 50:50 joint venture has expanded to 100 percent.
- The joint venture Shinsagae Intercos Korea, founded in 2015, allowed Intercos to enter the Korean market and to successfully establish and grow the local cosmetic manufacturing activities (ODM).
- For Shinsagae, the partnership was strategic to strengthen the position and the innovation rate of its cosmetic brands.
- After the initial phase, the two companies are evolving and reshaping the dynamic of the partnership.
- Intercos and Shinsagae are committed to maintain their collaboration, as proven by the long-term partnership agreement signed, to continue developing and launching innovative products under the Shinsegae brands.
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