Bain Capital, Goldman Sachs Bet on K-Beauty

KOREA: Bain Capital Private Equity and Goldman Sachs have agreed to acquire a majority stake in Korean beauty company Carver Korea.  Carver’s founder and chairman Lee Sang-rok will continue to hold a minority stake in the company and participate in day-to-day management. 

Founded in 1999 as a specialty cosmetics supplier to aesthetic salons, Carver’s portfolio of beauty brands includes its flagship skin care line A.H.C. (Aesthetic Hydration Cosmetics) as well as Shara and Vivito. All told, the company sells approximately 1,000 different cosmetics products in Korea, China and the US through diversified distribution channels, including home shopping television networks, retail stores, duty free shops, beauty salons, skin care clinics and internet commerce.

According to the Korea International Trade Association, since 2011, the average revenue of Korean cosmetics exports to China has grown annually at a CAGR of more than 50% and, by country of origin, Korea is currently the second-largest exporter of cosmetics to China after France.

Carver reportedly topped $130 million in sales last year. This represents a growth in sales of more than 200% compared to the previous period year on year.

The transaction marks Bain Capital Private Equity’s first investment in Korea.

“Korea is a very attractive market with many innovative and globally competitive companies. We have been building Korean expertise into our Asia team and looking for investment opportunities. Carver Korea has an attractive portfolio of brands and significant opportunities for growth both domestically and internationally,” noted Jonathan Zhu, a managing director at Bain Capital Private Equity.

According to Jeff Hyun Seok Kim, a managing director at Goldman Sachs, the investment in Carver “exemplifies Goldman Sachs’ aim to partner with Korean corporate leaders who are able to develop and offer world-class products.”