Gowoonsesang sold a 51% stake in its skincare brand Dr.G to Mibelle Group, a subsidiary of Migros Group, Switzerland’s largest retail company.
Key to Asia
This acquisition represents another milestone in the Mibelle Group’s international growth strategy, said the company in a press release.
The Mibelle Group said that it was particularly interested in South Korea, as the country has a reputation of being a global pioneer as well as a leader in health and beauty.
In acquiring the beloved Korean skin care brand, the Mibelle Group has found itself a solid footing in the Asian cosmetics market.
While the Mibelle Group did not disclose the financial details of the deal, it did reveal that Gowoonsesang generated $28.8m in sales last year.
Founded by Dr Ahn Gun Young in 2000, Gowoonsesang is the world’s second-largest medical skincare firm. Aside from producing its best-selling skincare line, the company also runs aesthetic clinics and develops dermatological devices.
Its skin care line, Dr. G, made waves in South Korea before expanding to other parts of Asia including China and Hong Kong, where it is widely available through beauty retailer Sasa. Currently, Dr. G is exported to over 30 countries.
“The acquisition of Gowoonsesang secures the Mibelle Group’s access to Asian markets, innovative technologies and business models, as well as synergies with its own projects,” said CEO of the Mibelle Group, Luigi Pedrocchi in a press release.
"We are entering one of the most important international skin care markets,” he continued. “The Mibelle Group is also supporting the Migros Group’s health strategy with new competency in dermocosmetics”
The company added that it would be taking over Gowoonsesang’s entire staff, which consists of about 60 members.
Road into Europe
While opportunities are abundant in Asia, the Mibelle Group also has its sights set on distributing Dr. G in Europe and North America.
“With the brand Dr. G, the Mibelle Group is expanding its pan-Asian distribution network, which is also very attractive to customers in Europe and North America,” said the company.
The Mibelle Group is a full-service provider for the production of private label goods and the third largest in Europe. The group employs around 1,200 people and generates sales of €450m ($521m). The company is part of M-Industry, a network of manufacturers owned by the Migros Group.