Unilever in $2.7-bn deal for Korean cosmetics maker

Skincare sales in South Korea will reach $6.3 billion this year, and interest in the Asian country’s cosmetics companies has been heating up

Unilever agreed to buy a South Korean cosmetics maker for ^2.27 billion ($2.7 billion) to gain a stronger foothold in the world’s fourth-largest skincare market.

Unilever will buy Carver Korea, maker of AHC skincare products, from shareholders including Goldman Sachs Group and Bain Capital Private Equity, the London — and Amsterdam — based company said in a statement Monday. Carver had sales of ^321 million last year.

For the Anglo-Dutch consumer-goods giant, whose brands include Ben & Jerry’s ice cream and Dove soap, the acquisition marks a shift from other recent purchases in niche areas like organic tea and vegan mayonnaise as Chief Executive Officer Paul Polman pursues a commitment to sustainability. The company has also been building up a “prestige” arm within its personal care business, targeting high-end brands founded in developed markets, such as Dermalogica, Ren and Murad.

Skincare sales in South Korea will reach $6.3 billion this year, and interest in the Asian country’s cosmetics companies has been heating up. Bain Capital agreed to invest about $816 million in beauty products maker Hugel in April. AHC’s products include moisturizers, toners and sun protection.

South Korean cosmetics companies had robust growth in past years, helped by strong Chinese demand, which has weakened recently amid geopolitical disputes in the region. Operating profit of Amorepacific, South Korea’s largest cosmetics company, dropped 58 per cent in the second quarter.