Private equity fund (PEF) manager Arc & Partners has become the new owner of Changshin, a cosmetics container manufacturer.
On the 29th, according to the investment banking (IB) industry, Arc & Partners recently paid in full for the acquisition of the controlling equity in Changshin, a cosmetics container manufacturing and distribution company, finalizing the deal.
Arc & Partners earlier pursued the acquisition of Changshin's controlling equity in Oct. At the time, it also signed a stock purchase agreement (SPA) to acquire about 90% of the controlling equity held by Chief Executive Kim Seong-yong, the major shareholder of Changshin, and others.
Changshin's corporate value assessed during the acquisition process was in the low 200 billion won range, and Arc & Partners covered the acquisition payment using funds from its first blind fund formed early this year.
Founded in 1988, Changshin counts major domestic and overseas cosmetics brands as clients. It posted 74 billion won in sales and 17.3 billion won in operating profit last year.
Arc & Partners was said to have highly valued that Changshin in particular secured domestic indie skincare brands as key clients. The recent global popularity of K-beauty is being led by indie brands.
An Arc & Partners official said, "Sustained and structural growth in K-beauty is expected," adding, "We determined that Changshin is a related corporation that appears likely to benefit the most from the growth of K-beauty brands."