L Capital Asia, an LVMH investment arm, will buy roughly 7% of the company
LVMH is acquiring a minority stake in Clio Cosmetics, a South Korean manufacturer, for $50m, according to The Wall Street Journal.
L Capital Asia, an investment arm of LVMH will buy approximately 7% of Clio Cosmetics, which values the Korean company at about $700m.
Clio is said to be seeking approval to launch an IPO as early as November, with Pulse stating that Clio selected NH Investment & Securities Co. as an agency in charge of the IPO.
Clio is a manufacturer of cosmetics products spanning the eyes, lips, face and nails sub-categories. It also has a skin care range. It operates a number of stores in South Korea with sites located in Seoul and Busan, while a few stores also exist in the US.
LVMH’s Q1 results saw a series of disappointing figures in light of declining tourism. However, revenue for cosmetics and fragrance did grow 7% compared with the same period in 2015.
The news follows the deal involving Goldman Sachs and Bain, which invested in South Korean cosmetics company Carver Korea this month.