Amorepacific(090430) is pushing to sell its Anseong health functional food plant, which has an annual production capacity of 200 billion won. The move is seen as aiming to improve asset management efficiency while reorganizing the inner beauty business around research and development (R&D).
On the 19th, the industry said Amorepacific recently sent requests for proposals (RFPs) to major advisory firms to select a lead manager for the sale of the Anseong plant.
The Anseong plant's product production capacity last year was 204.7 billion won. Some advisory firms are said to be bringing in strategic investors (SI) considering entry into the health functional food business as potential buyers.
Industry watchers see the sale as aligned with Amorepacific's medium- to long-term business restructuring strategy. The analysis is that the company aims to boost capital efficiency by selling production facilities and focus on strengthening product research and brand competitiveness in the inner beauty business.
Inner beauty refers to a consumer trend that goes beyond topical cosmetics to manage health and beauty from within the body by consuming products such as health functional foods.
Amorepacific is strengthening its R&D capabilities related to health functional foods based on research teams in nutritional metabolism and medical science. There is speculation that the company may adjust its business structure to place more weight on advanced ingredients and product development rather than operating in-house production facilities.
An Amorepacific official said, "We are pushing the sale of the Anseong plant for efficient asset management."