Leading cosmetics manufacturer, Kolmar Korea, has acquired a majority share of 85% in Canadian cosmetics ODM CSR Cosmetics Solutions to extend the brand’s presence in the US and Canadian marketplaces.
On 30th November 2016, Kolmar Korea revealed it made the agreement to purchase the majority share in the Canadian cosmetics company, along with its manufacturing facility and site in a deal reported to be worth 25 mn won (€19.7 mn).
CSR Cosmetics was previously named Kolmar Canada, before undergoing a rebrand in 2008 and becoming CSR Cosmetic Solutions.
Skin care products make up 66% of the company’s product portfolio, whilst make up lines account for 24% of CSR’s total sales, which last year hit 30 billion won (€24 mn).
With supply agreements in place with multiple global cosmetics brands and well-known renowned domestic names, CSR Cosmetics has appropriate links with the US market.
The infrastructure and relationships are, therefore, already in place for Kolmar Korea to build Korea’s reputation for innovative and unique cosmetics, internationally.
Due to the popularity of its creative and unique K-beauty and K-pop trends and associated product lines, the Korean cosmetics market has grown significantly in recent years. As such, this latest acquisition represents the nation’s plans to expand its success into wider markets.
In September, the Korean ODM acquired Process Technologies & Packaging (PTP), a US cosmetics maker that creates visually-striking beauty products that complement Korea’s renowned colour cosmetics sector and unique packaging trend, along with the company’s efforts to conquer the US and Canadian markets.
Wormser Corporation, which provides product development and design and engineering services to cosmetics brands, has a 49% share in PTP. While Wormser will look after PTP’s sales, marketing and advertising opportunities within the region, Kolmar Korea will focus on its R&D and production needs.
As Wormser is also based in the US, this partnership may also help to further strengthen Kolmar Korea’s objective to increase its presence in the marketplace.
Kolmar Korea has also announced its plans to invest 14.8 bn won (€11.9 mn) to establish a new wholly-owned subsidiary, reports Reuters.
The ODM plans to set up the subsidiary, named Seokah Canada, to manage stock and acquire property in the US and Canadian regional marketplace.