It has been reported that L’Oréal is acquiring a 70% stake in Korean budget fashion and cosmetics brand Style Nanda in a deal estimated to be almost 400 billion won ($37.21 billion USD). Deal manager UBS said L’Oréal was the preferred bidder but L’Oréal has not commented.

WHO: At the age of 22 Kim So-hee launched Style Nanda, an online retailer that has expanded to brick-and-mortar stores in South Korea, Tokyo, and Hong Kong. The business started as a fashion brand, but more recently it is focusing on the cosmetics business. During the first half of 2017, almost 70 percent of the total sales, worth 78 billion won, came from its cosmetics brand 3CE, one of the most popular beauty brands in China.

WHY: Taking advantage of the K-beauty brand’s popularity, L’Oréal is expected to seek a bigger presence in the Chinese beauty market.

DETAILS:

• CEO and founder Kim So-hee, who owned the entire stake in Style Nanda, sold a 70% interest for a reported 400 billion won ($37.21 billion USD) to L’Oréal. So-hee will remain as a major shareholder with 30 percent stake.
• Deal manager UBS said L’Oréal was the preferred bidder. Other interested parties, Carlyle Group, Kohlberg Kravis Roberts, and CVC Capital, participated in the bidding.
• Kim So-hee will focus on the product design and brand management as the main creative director.
• According to Reuters, the unlisted firm recorded 129 billion won in sales in 2016, versus 109 billion in 2015, a regulatory filing showed.