South Korea’s LG Household & Health Care Ltd. has acquired Physiogel’s business rights in Asia and North America for 125 million pounds ($161 million) from global pharmaceutical company GlaxoSmithKline.

WHO: Dermo-cosmetics brand Physiogel was established by Germany-based Stiefel Laboratories, which GlaxoSmithKline took over in 2009.

LG Household & Health Care is Korea’s leading consumer goods company, with strong market positions in all major categories including cosmetics, personal care, and home care. Korea is one of the world’s largest and most innovative beauty markets, with over $13.1 billion in sales in 2018. LG H&H currently distributes a number of its brands in the US, including belif and The History of Whoo.

WHY: The purchase aligns with LG Household & Health Care’s wider mission to strengthen its personal care arm and leveraging Physiogel’s strong global presence to expand its dermo-cosmetics and personal care business at home and abroad.

DETAILS:

• LG Household & Health Care has agreed to acquire the license for Physiogel in Asia and North America.
• The deal is valued at KRW192.3 billion ($161 million) and is expected to complete in the second half of the year.
• The brand earned 110 billion won ($91.4 million) in worldwide sales in 2018. The Asian market accounted for over 60 percent of its global sales, with Korea contributing nearly 30 percent.
• In time, the GSK-owned brand’s production will move from its current Thai base to LG’s plants in South Korea, China, Japan, and the US.
• In April 2019, LG acquired the entirety of Cerberus’ majority interest and Avon Worldwide’s minority interest in Avon North America for $125 million in cash.