Hyundai Department Group acquired cosmetics material supplier SK Bioland for 120.5 billion won ($101.9 million), venturing further into the beauty and healthcare market.

WHO: Established in 1995, SK Bioland is Korea’s largest maker of natural cosmetic materials and also develops raw materials for health supplements and active pharmaceutical ingredients. It currently runs five production factories in South Korea and has two overseas corporate bodies in China.

WHY: The group is expected to bolster its health food and biomedical offerings by leveraging its retail and distribution arms Hyundai Department Store, Hyundai Home Shopping, and Hyundai Green Food

IN THEIR OWN WORDS: “We made the final decision for acquisition, finding that SK Bioland’s major businesses have a high potential for growth and has a flexible business structure for expansion,” a Hyundai Department Store Group official said.

“Hyundai Department Store’s acquisition of SK Bioland Co. is a suitable and timely merger and acquisition with the rising global trend of ingredients in dietary supplement, food and beauty being combined and showing synergy,“ Lisa Hong, a senior analyst at Euromonitor International Korea, said to the Korea Herald. “Hyundai Department Store is projected to launch their own brand and products as well as develop new business areas that may offset currently declining retail business sales.”

DETAILS:

• Hyundai Department Store group is buying SKC’s entire 27.9 percent stake in SK Bioland plus management rights.
• SKC, which is 41.0 percent owned by SK Holdings, will be selling the stake for 120.5 billion won ($101.7 million) to Hyundai HCN, which is 11 percent owned by Hyundai Department Store.
• SK Bioland became a part of SK Group in 2015.
• In 2019, SK Bioland recorded sales of 106.3 billion won and an operating profit of 14.5 billion won.
• Hyundai portfolio company Handsome acquired a majority stake in cosmeceutical company Cleangen in May 2020.