Consumer goods giant Unilever takes major new step into Asian cosmetics

● British-dutch major pays out £1.9bn for burgeoning Carver Korea business

Unilever has splashed out €2.27 billion (£1.9bn) to acquire South Korean cosmetics firm Carver Korea in a move to beef up the Britishdutch consumer goods giant’s footprint in the Asian beauty market.

The group revealed yesterday that it had bought the business from Bain Capital Private Equity, Goldman Sachs and the firm’s founder.

It hailed Carver Korea as the fastest growing skincare business in South Korea, through sales of its AHC brand. The range includes eye cream, essences, toners and moisturisers.

Carver had sales of €321 million (£282m) in its latest financial year, on which it made a profit of €137m. “We are delighted to be acquiring Carver Korea. It is an impressive business that is complete- ly aligned to our personal care strategy,” said Alan Jope, president of personal care at Unilever.

“It will significantly strengthen our position in north Asia, the largest skincare market in the world, and will complement our existing portfolio, enabling us to offer luxury skincare products at attainable price points.

“AHC has been strongly gaining popularity thanks to its efficacious, innovative and premium products, and it therefore offers great opportunities for growth.”

Ed Han, Bain Capital Private Equity MD, said: “This has been a great opportunity for us to partner with a leading Korean company in an exciting segment of the cosmetics space and to help support its brand, operations and growth around the world. Unilever is a strong partner to help the company in its next phase of growth and development.”

The parties said yesterday’s deal is subject to regulatory approval.

Unilever,witha169,000headcount worldwide, announced in April that it planned to sell some major brands – including Flora and Stork – after repulsing an unsolicited $143bn (£106bn) takeover offer from Kraft Heinz.

It plans to sell or de-merge its underperforming spreads business, which City analysts believed could fetch about £6bn.

The Marmite and Pot Noodle maker cut loose a portion of the spreads division on Friday when it secured a deal to take full control of its South African subsidiary from Remgro in exchange for its spreads unit and cash.

Earlier this month Unilever took a stronger foothold in the herbal teas market, estimated to be worth £1.5bn a year, when it bought up Bristol-based Pukka Herbs for an undisclosed sum.