Able C&C Scrambled by L’Oreal, Estee Lauder and LVMH

Recently, nearly six investors have recently submitted a letter of intent to buy 59.2% of the shares of Korean cosmetics group Able C&C. The competition for a controlling stake in Able C&C is intensive.

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It is understood from public information that Able C&C is one of the three major cosmetic groups in South Korea, with brands such as MISSHA, A’PIEU, CHOGONGJIN and Stila Cosmetics.

According to other media reports, IMM, a Korean capital management company, became the largest shareholder of Able C&C with a 40 billion won ($30.8 million) stake back in 2017. Six years later, the company is seeking to exit its stake. Including the operating rights, the deal is valued at about 100 billion won ($76.9 million).

Notably, L'Oreal, Estee Lauder and LVMH P&C, the cosmetics and fragrance subsidiary of the LVMH Group, are among the companies that have also participated in the bid.

IMM is reportedly planning to announce the bidders in the coming weeks, with the final bidding to be held in May.

In addition, according to Able C&C's financial report, the company's total sales were 247.8 billion won ($190.6 million), down 5.74% year-on-year in 2022. Its net profit was 6.338 billion won ($4.9 million), down 86.08% year-on-year. The company's sales in South Korea fell 20.48% year-on-year.

One of its main brands, MISSHA, had closed its Korean stores in large extent. According to Able C&C's financial report, MISSHA lost a total of 3.167 billion won ($2.4 million) in fiscal 2022.

However, it is worth noting that Able C&C's sales in Japan increased by 34.01% year-on-year. In China, its sales increased by 4.8%.

According to other media reports, investors are closely watching Able C&C's growth potential. Despite the disruption of fierce competition and epidemics, it gained optimistic growth in markets outside Korea in recent years.

Meanwhile, thanks to its strong growth in international performance, Able C&C's share price has soared about 24% in the past six months.

Just earlier this month, Kim Eugene, CEO at Able C&C told the media that he was confident in the company's growth potential, saying it would continue to explore international markets and improve profitability.