South Korean private equity (PE) firm VIG Partners, which specialises in mid-market buyouts, has acquired a 73 per cent stake in Press & Converting (P&C Co.), a facial pack manufacturer that reportedly occupies 70 per cent of the local market.
The transaction sees the transfer of management rights worth KRW 145.6 billion ($126.1 million) for the stake, valuing the company at about $172.7 million.
P&C was established by current president Sohn Chul-jae in 2008 to provide facial pack sheets to cosmetics makers.
The company produces 1.8 billion pack sheets per annum and supplies to more than 300 corporate clients. Post-acquisition, Sohn will be the second largest shareholder and will collaborate with new managers from VIG Partners.
Incepted in 2005, VIG Partners targets financial services, consumer goods, online and mobile commerce, and household appliance sectors. It also considers investments in small and medium-sized enterprises (SMEs), which are typically founder-owned and operated.
Earlier this year, VIG Partners closed its third fund at $600 million, reaching a first close of $480 million in October 2016. South Korea’s National Pension Service contributed KRW202 billion ($175 million) to the first close.
With a beauty and cosmetics market valued at more than $13 billion as at April 2017, South Korea’s facial skin care sector accounts for up to 51 per cent of total market share, with retail sales figures being posted at $6.5 billion and set to grow to $7.2 billion by 2020, with a compound annual growth rate (CAGR) of 5.8 per cent.