L'Oréal Acquires Gowoonsesang Cosmetics

Investing.com — On Monday, L'Oréal (EPA:OREP) announced its agreement to acquire Gowoonsesang Cosmetics, the company behind the South Korean skincare brand Dr.G, from Swiss retailer Migros, according to a Reuters report.

This acquisition is part of L'Oréal's strategy to enhance its presence in the rapidly growing K-Beauty market, renowned for its innovation and wide appeal.

In a statement, the French cosmetics giant highlighted the soaring demand for K-Beauty products, pointing out the affordability and effectiveness of Dr.G's skincare line. L'Oréal also noted Dr.G's potential for further growth in Asia and globally.

This deal follows Migros's review of its Mibelle cosmetics unit, announced in February, which aimed to find new ownership for Gowoonsesang and other related brands.

Although financial details of the transaction were not disclosed, the acquisition takes place amid a cooling period for China's previously booming beauty market, as reported.

This marks L'Oréal's second significant investment in South Korea’s beauty sector, following its acquisition of the makeup brand 3CE in 2018.