This article was published on April 8, 2025, at 2:51 p.m. on the ChosunBiz MoneyMove site.
The sale of Seorin Company, known for its cosmetics brand Round Lab, is stalled. While the sellers initially expected a price in the trillions, it is reported that buyers are only willing to pay around 500 billion won. Unless the sellers significantly lower their expectations, it seems unlikely that a transaction will be finalized.
According to investment banking (IB) sources on the 8th, domestic private equity fund (PEF) operator Calyps Capital and MERITZ Securities have appointed global IB Bank of America Merrill Lynch (BofA) as the sale's lead manager in the second half of last year for the sale of Seorin Company, but they have yet to find a buyer.
The first to sit at the acquisition negotiation table was CVC Capital, a European PEF operator. They submitted an acquisition proposal of 800 billion won and secured the status of preferred negotiator, but could not reach an agreement on detailed terms such as price.
The next negotiation candidates are the consortium of Goodai Global, known for its cosmetics brand 'Chosun Beauty', and Company K Partners, which is expanding its domain through management rights acquisitions. They proposed an acquisition price of less than 600 billion won, but this was too far from the price range expected by the sellers, who were looking for a trillion-won valuation.
There are also factors weighing on corporate value. Founded in 2017, Seorin Company operates the cosmetics brand Round Lab. Its flagship products, Dokdo toner and birch tree sunscreen, experienced rapid growth supported by the distribution channel Olive Young, but conversely, this indicates a high dependency on Olive Young.
It is not without basis that the sellers are seeking a high price. Seorin Company's revenue, which was only 36.3 billion won in 2020, surged more than three times to 115.6 billion won in 2023. Operating profit also increased from 16.3 billion won to 55.3 billion won during the same period. Last year's revenue and operating profit recorded 196.1 billion won and 73.5 billion won, respectively.
The instances of successful quick recoveries of investment in the thriving IB industry are also fueling expectations from the sellers. The Harm Partners, who purchased Tirtir for 89 billion won in September 2023, sold it to Goodai Global, the operator of 'Chosun Beauty', for 150 billion won last April. This means they achieved nearly 70% revenue in just seven months.
A senior executive in the IB industry noted, "Even if the sellers lower their expectations to the maximum, it is expected to be around 700 billion won, which is still a burdensome price for buyers," adding, "The company has not yet been verified in major overseas markets like the U.S. and Japan, and its high reliance on military supply is also seen as a weakness."
Another industry source indicated, "Whether in cosmetics or fashion, for brands, there is an infinite downside risk in investments, so the upside has to be significant, but there are clearly factors suppressing that," explaining, "Since the sellers are not in a hurry to sell, the sale may take longer."
Calyps Capital is a newly established private equity fund (PEF) operator founded in 2022, led by CEO Lee Hyuk, who is from LG Electronics, and Vice President Lee Moon-seop from Samil. Last year, they teamed up with MERITZ Securities to acquire 100% equity of Seorin Company for 230 billion won and hope to sell it for three to four times that amount within two years.