Chinese Company Acquires High-end French Cosmetics Brand EVIDENS DE BEAUTE
- Chaileedo Press
- Jul 18, 2022
- 4 min read
Abstract: On July 17, S’YOUNG announced that it intends to acquire 90.05% of the equity and some creditor's rights of the parent company of the French high-end cosmetics brand EviDenS de Beauté for about €44.5 million ($44.95 million). According to the announcement, in 2021, EviDenS de Beauté SAS achieved a revenue of $19.8 million and a net profit of $5.5498 million.
According to CHAILEEDO, the acquisition will be completed by wholly-owned subsidiaries HONG KONG YU JIA INTERNATIONAL TECHNOLOGY COMPANY LIMITED and JYJH LIMITED. It is planned to purchase a total of 90.05% of the equity of EviDenS de Beauté SAS held by the entities including Kazokou SAS and Orsay 53 SAS for €44.5 million ($44.95 million).
At the same time, it purchased the debts formed by the dividends declared at the beginning of the year but not paid by EviDenS de Beauté SAS held by the original shareholders at a par value of €5 million (approximately $5.05 million). The total value of this transaction is €49.5 million ($50 million).
According to the announcement, in 2021, EviDenS de Beauté SAS achieved a revenue of $19.8 million and a net profit of $5.5498 million. EviDenS de Beauté SAS has an international Ph.D. R&D team, and its high-end anti-aging brand EviDenS de Beauté has also been globalized. The brand's total global terminal retail sales exceeded $74.1 million.
And that's why S’YOUNG is interested in EviDenS de Beauté SAS. According to public information, the EviDenS de Beauté brand was founded in 2007. It combines Japanese skin care technology and French skin care sophistication. It is a luxury anti-aging brand specially developed for sensitive skin. The products cover all daily skin care products such as makeup remover, facial cleanser, cream, essence, mask, etc.
CHAILEEDO learned that as early as 2016, EviDenS de Beauté opened a Weibo account to connect with Chinese consumers. In 2019, the brand officially entered the Chinese market. Now it has opened a Tmall store, an online mall in the Mini Program, etc., and has settled in China's high-end department store SKP. In China, S’YOUNG is the exclusive agent of the brand. S’YOUNG said, "EviDenS de Beauté has gradually gained popularity in China's beauty market, accumulated a high reputation among consumers, and achieved great growth in brand revenue."
At present, EviDenS de Beauté has carried out business layout in many countries or regions around the world, and its sales areas include more than 30 cooperative countries or regions such as the United States, France, the United Kingdom, Japan, South Korea, Thailand, etc., and it has settled in Galeries Lafayette, Rosewood Hotels, Tsum, King Power, Harrods, etc.
S’YOUNG said that after the completion of the above acquisition, EviDenS de Beauté SAS will become its holding subsidiary, which will be included in the company's consolidated statements. In addition, the founder of EviDenS de Beauté SAS still holds a minority of shares in the company and will serve as the legal representative of the company, and the original team of EviDenS de Beauté SAS will continue to remain. After the acquisition, EviDenS de Beauté SAS will continue to maintain independent operations.
S’YOUNG was originally Yujiahui. It is the parent company of domestic skin care brands such as UNIFON, MIHOO, and Huayaohua. S’YOUNG was listed in February 2018. However, the company's performance in the first two years after its listing did not improve by leaps and bounds. On the contrary, its net profit fell by 80% to less than $4.446 million in 2019. Since then, the company's strategy has changed, and the business model of "with its own brand as the core, driven by its own brand and agent brand" has been launched, and in March last year, the company name was changed to S’YOUNG.
In this model, S’YOUNG quickly turned the situation around. CHAILEEDO combed the financial report of S’YOUNG and found that the company's revenue has increased from $243.9 million before listing (2017) to $742.5 million in 2021, and its performance has doubled in five years. In particular, in 2020, the net profit increased by 417.58% after the decline of the previous two years. And it still maintained an increase of 70% in net profit last year.
According to incomplete statistics from CHAILEEDO, since 2018, seven companies, including YSG, GoLong, Proya and S’YOUNG, have invested in/acquired foreign beauty brands and companies, or established corresponding industrial funds for overseas high-quality beauty brands.
For example, after its listing, YSG has successively acquired two international brands, the French high-end skin care brand Galénic and the British high-end skin care brand Eve Lom. According to Proya's 2021 financial report, the revenue of the company's cross-border agent brand is $20.1 million.
Today, Chinese companies have gradually formed a trend of "buying products from all over the world", which is completely different from the previous situation in which international beauty companies aggressively acquired Chinese beauty brands.
Some industry insiders believe that the massive acquisition of foreign beauty brands by Chinese beauty companies represents a new stage in the internationalization of China's beauty industry. It is an inevitable stage for the development of China's cosmetics industry to improve the brand and category structure of local cosmetics companies by acquiring international high-quality beauty brands.
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