Chief Executive Officer David Chung of Englewood Labs sold his controlling interest to Cosmecca Korea for 57.8 billion won ($53.7 million). Cosmecca Korea Co., a South Korean contract manufacturer of cosmetics, has been seeking to tap the US market.

WHO: Founded in 2004, Englewood Lab is a contract manufacturer of cosmetics with extensive research and development capabilities. The business has plants in Englewood and Totowa, New Jersey, capable of making 87 million products per year, while its production unit in Namdong industrial complex in Incheon, Korea, annually produces 100 million products.

Cosmecca Korea Co. is a South Korean cosmetic company specializing in R&D and the manufacturer of cosmetics.

WHY: Cosmecca has been seeking to enter the US market.

DETAILS:

• Cosmecca Korea Co. buys a 34.71% stake in Englewood Lab Inc. for 57.8 billion won ($53.7 million).
• Cosmecca aims to officially take over management on June 8.
• With the deal, Cosmecca’s total production capacity would be ramped up to 737 million units from 550 million as of late 2018.
• Englewood Lab received a minority investment from Japanese manufacturer Nihon Kolmar in 2017.
• Chief Executive Officer David Chung, who said he sold his controlling interest to Cosmecca Korea, will use the money to invest in Farmacy, a skincare brand he cofounded with Mark Veeder. He said he is also considering making other strategic indie beauty investments.