This article was featured on the ChosunBiz MoneyMove (MM) website on April 3, 2025, at 3:13 p.m.
Recently, with active mergers and acquisitions (M&A) among cosmetics corporations, numerous cosmetics companies valued at hundreds of millions of won have flooded the market. Founders feeling limits in running their rapidly growing organizations are believed to be seeking to sell their management rights.
According to investment banking (IB) industry sources on the 3rd, Dr. Vita, known for its 'snail cream,' is currently pushing for a sale of its management rights. Daycell Cosmetic, Bio Vitamin, and Cosen Bio, which are held by sellers and related parties, are also reported to be up for sale. The sellers are hoping for a sale price of over 30 billion won.
Marshique, known for its wrinkle improvement patch, has also become available for sale. Marshique has shown significant growth since entering Olive Young in 2023. Revenue, which was only 4 billion won in 2022, soared to about 12 billion won in 2023, and last year it more than surpassed 18 billion won. The desired sale price is around 35 billion won.
Zoe Bio, which produces cosmetic materials and develops peptide-based hyaluronic acid (HA) filler businesses, is also probing for management rights sale intentions. Peptides promote skin regeneration and increase collagen synthesis, improving skin elasticity. HA plays a crucial role in retaining moisture in the skin. Last year, it posted an operating profit of 1.5 billion won, but due to its rapid growth, it seeks a sale price of 50 billion won.
◇ The cosmetics market is rapidly growing centered on indie brands
The reason behind the surge in cosmetics-related M&A listings is that the associated industry has rapidly grown. According to Samil, the domestic cosmetics market has seen an average annual growth of 7.8% over the four years since 2020, moving away from dependence on China and showing high growth in the United States and Japan.
The background enabling the growth of the cosmetics market is attributed to the competitiveness of Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) companies, as well as the rise of indie brands and distribution channels. It signifies that the competitiveness of OEM and ODM companies created fertile ground for the ideas of cosmetics indie brand founders to flourish.
A source from the IB industry who recently acquired a cosmetics company noted, 'As cosmetics companies grow rapidly, many are put up for sale because they cannot manage their significantly increased size,' and added, 'People with good intuition sometimes choose to sell a company that has grown to a certain extent rather than grow it larger, and instead launch another brand.'
The 'big players' in the cosmetics M&A market have been global cosmetics companies like L'Oréal and Estée Lauder; however, major corporations and Private Equity Fund (PEF) operators who have confirmed the market's growth potential have also jumped into the acquisition competition. Recently, companies that started as indie brands have also been acquiring smaller brands to grow their businesses. Goodai Global, which was established in 2016 and became famous for its brand Chosun Beauty, successively acquired Lakakosmetics (39.3 billion won), Tirtir (150 billion won), and Craver Corporation (246 billion won) last year.
With the active transactions of management rights of cosmetics corporations, cautious opinions are also emerging. A source from a mid-sized PEF operator mentioned, 'It's true that the cosmetics market is good now, but no one can guarantee whether the industry will be prosperous at the time of sale in 3 to 4 years' and added, 'Buying an indie brand that's trendy can become unmanageable if the trend passes.'
A source from the IB industry currently considering the acquisition of a cosmetics company stated, 'The multiples for cosmetics companies usually range from 6 to 15 times the enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), but they can go as high as 25 times if expensive,' and noted, 'We are reviewing companies that have potential not only domestically but also internationally.'