Goodai Global, which has become a major player in the K-beauty mergers and acquisitions (M&A) market by consecutively acquiring cosmetic brands like 'Round Lab' and 'Skin Food,' has now revealed plans to sell. The color cosmetics brand 'LAKA' is up for sale, just a year after its acquisition last June.
According to the investment banking (IB) industry on the 20th, Goodai Global has recently started the sale of its management equity in LAKA Cosmetics. It aims to complete the sale by the end of this month, with the founder of Tirtir reportedly stepping in as a prospective buyer.
The sale price is set at approximately 53 billion won. Considering that Goodai Global acquired about 88% of the management equity held by the founder of LAKA Cosmetics last June for 42.5 billion won, it is estimated that there will be a profit of around 10 billion won within just over a year of acquisition.
There are analyses suggesting that Goodai Global has embarked on restructuring its acquired brands. While brands like Tirtir and SKIN1004, which were acquired starting with Beauty of Joseon in 2019, are rapidly growing, LAKA's growth has not met expectations.
Goodai Global has decided to make additional acquisitions this year, including Round Lab and Skin Food, and it is reported that during a recent 800 billion won funding process, financial investors (FI) were informed that 'LAKA's growth potential has not met expectations,' leading to the decision to sell.
A representative from Goodai Global stated, 'It is true that the sale process of LAKA Cosmetics is underway,' adding, 'We thought LAKA had sufficient brand power for acquisition, but we concluded that it did not reach the level we expected.'