Unilever to acquire personal care company Carver Korea

Javier Howell
September 27, 2017

This is reflective of a "recalibration" of advertising spend in the overall market, strong savings delivery from its zero-based budgeting programme, as well as innovation and support plans weighted towards the second half of 2017, particularly in personal care.

Buying Carver will help Unilever gain ground in the Korean beauty market, where hair and beauty trends often influence ones further west, the Journal noted.

"They help preserve our market position in attractive segments where we can bring our global scale and local strengths to bear", the company said in its most recent annual report.

The range of products now includes its hero line "Eye Cream for Face", along with essences, toners, moisturisers, masks and sun protection. The brand will also complement Unilever's existing portfolio, enabling it to provide consumers with luxury skincare products at affordable prices. The division collected €20.2 billion in revenue past year, or about 38 percent of the conglomerate's overall sales. "The value of South Korea's beauty market will reach about $13 billion this year, according to market researcher Mintel".

"So-called "K-Beauty" has become shorthand in the industry for beauty products which are driven by unusual natural ingredients, such as snail gel, volcanic ash and green tea", explains Ashley Armstrong for the Telegraph. "This is partly driven by South Koreans's goal to achieve "chok-chok" skin, which Mintel says is the term given for "bright, fair, plump, dewy and youthful" complexions".

Unilever made its formal move on Carver Korea yesterday for a business that was founded back in 1999 and which has shown impressive growth over the last five years, delivering sales of €321m ($379m) and EBITDA of €137m ($162m) in 2016. In 2015, Carver posted total sales of about $130 million.

The company co-headquartered in London and Rotterdam said it has agreed to buy Carver Korea, South Korea's third-largest cosmetics firm, from Bain Capital Private Equity, Goldman Sachs and the company's founder.

Other reports by Insurance News

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