MILAN — Leading cosmetics manufacturer Intercos Group said Wednesday it has taken over the joint venture it created with fashion and beauty retailer Shinsegae International by acquiring the remaining 50 percent of Shinsegae Intercos Korea Inc. Financial details of the deal were not disclosed.
The operation mirrors Intercos’ strategy of further investing in the country, leveraging the Intercos Korea company as a key hub for Asia since it will become its main research and development center for the area and a global center of excellence for categories including foundations and skin care.
As reported, the equal joint venture was formed in 2015 to allow Intercos to enter the market and grow local cosmetic manufacturing activities and to enable Shinsegae to strengthen the position and innovation rate of its cosmetic brands. The two companies said they are committed to maintaining their collaboration by continuing to develop and launch products under the Shinsegae brands.
“We are thankful for this successful partnership and ready to seize new opportunities in the Korean market,” said Intercos Group’s founder and executive chairman Dario Ferrari. “Today a new phase for us in [South] Korea begins, where Intercos, as an independent player, will be able to fully exploit significant synergies with the rest of the group and further invest in this strategic hub for Asia,” he said, adding that he believes the move “will allow both companies to focus on their respective core business in order to capture any market potential.”
Founded in 1972 and based in Agrate Brianza — a 40-minute drive from Milan — Intercos manufactures and supplies lipsticks, eye shadows, mascaras, foundations, powders, pencils, nail polishes and skin-care products to around 450 customers globally. It employs about 5,800 people worldwide, distributed through 11 research centers, 15 production plants and 15 sales offices on three continents.
In 2019, the group reported revenues of 712.7 million euros, up 3 percent compared to the previous year. In particular, makeup accounted for 66 percent of revenues, hair and body products for 20 percent and skin care for the remaining 14 percent.
L Catterton-owned CP7 Beauty Luxco Sàrl holding company and Ontario Teachers’ Pension Plan retain shares in the company, accounting for 33.75 percent and 20.59 percent, respectively.
Last year, the Italian beauty firm was particularly active on the mergers and acquisitions front. In June, it sold back to the firm its minority stake of 20 percent in the Korean company Hana Co. Ltd. As reported, Intercos bought those shares in 2015.
The following month, the group acquired 69 percent of American company Mubic Ltd. In addition, last fall Intercos invested 1.5 million euros to secure 8.8 percent of Arterra Bioscience SpA, an Italian research-based biotech company listed on the Milan Stock Exchange.
As reported, in 2017 Intercos bought hair, skin- and body-care manufacturer Cosmint Group, owned by the Masu family.
Back then, as part of the agreement, Cosmint’s president Decio Masu joined Intercos’ board. Last summer, Masu resigned as a director and was succeeded by Nikhil Srinivasan.