LVMH to buy stake in Clio Cosmetics ahead of IPO

22-Jul-2016

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.

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The news follows the deal involving Goldman Sachs and Bain, which invested in South Korean cosmetics company Carver Korea this month.

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