This article was displayed on the ChosunBiz MoneyMove site at 3:42 p.m. on May 9, 2025.
Amid the ongoing sale of management rights for Aekyung Industrial, it has been confirmed that the mid-sized distributor Atomy is considering an acquisition. Reports indicate that multiple mid-sized private equity fund (PEF) operators, who primarily invest in the consumer goods industry, are also interested in Aekyung Industrial. The preliminary bidding is scheduled for next month.
According to investment banking (IB) industry sources on the 9th, Atomy is contemplating the feasibility and benefits of acquiring the management rights of Aekyung Industrial, as well as the potential synergy effects post-acquisition. The selling price for the 63.38% stake, which Aekyung Group hopes to sell, is approximately 600 billion won. However, an Atomy official noted, “There are no plans to acquire.”
Atomy is a direct-selling distribution company where the founder, Chairman Park Han-gil, and his family hold all shares. Last year, they recorded consolidated sales of 1.2 trillion won and an operating profit of 180 billion won, with current assets amounting to 622.3 billion won. The company has subsidiaries in the United States, China, Singapore, Russia, Australia, Brazil, Canada, Germany, and the United Kingdom.
Atomy is also the fourth-largest cosmetics company in South Korea, based on production value. According to the Ministry of Food and Drug Safety's announcement last year regarding the '2023 cosmetics production, import, and export statistics,' Atomy recorded a production value of 176.6 billion won last year, trailing behind Amorepacific Corporation, LG H&H, and Aekyung Industrial.
However, Atomy does not directly produce its products. Most products are supplied by subsidiaries of Kolmar Korea. Cosmetics are supplied by Kolmar, and health functional foods are supplied by Kolmar BNH.
In contrast, Aekyung Industrial is a corporation that manufactures and sells both cosmetics and household goods. If Atomy acquires Aekyung Industrial, it would be able to leverage Aekyung Industrial's production facilities to achieve vertical integration in product manufacturing.
An IB industry source stated, “However, in such a case, Atomy would have to sever its close ties with Kolmar Korea and embark on vertical integration, which raises doubts about whether this would be easy.”
There are also variables to consider. In the industry, there are assessments indicating that Aekyung Industrial's valuation is somewhat high. Considering that its current market capitalization is 370 billion won, the value of the 63.38% equity stake is only about 230 billion won.
Nonetheless, it has been reported that not just Atomy, but also some mid-sized private equity funds (PEs) have significant interest in acquiring Aekyung Industrial. Although Aekyung Industrial does not have a trendy brand fitting the so-called 'K-Beauty' boom, it is positively evaluated for its solid manufacturing capabilities and distribution network.