Cosmax Co., a South Korean cosmetics maker, said Monday it has acquired a U.S. company for US$50 million to expand its foothold in the North American market.
The Korean company said it signed a contract earlier in the day to buy all of NuWorld Beauty.
Cosmax is the country's leading original design manufacturer (ODM), making products ranging from skincare to haircare and facial masks.
The latest deal is the second acquisition made by the Korean firm in the U.S. market, following the takeover of French cosmetics maker L'Oreal's factory in Solon, Ohio in 2013, it said.
Founded in 1991, NuWorld Beauty specializes in color cosmetics, nail polish and fragrance products, with a 13,223 square-meter factory in New Jersey. It logged $105 million in sales last year and is expected to post 10-percent growth this year, according to the Korean firm.
Cosmax said it will strengthen its production and marketing capabilities, research and development following the acquisition, with an aim to post 200 billion won ($178 million) in revenue in the U.S. market alone by next year, and 3 trillion won worldwide by 2020.
|In this photo provided by South Korean cosmetics maker Cosmax Co., officials from the company and U.S. cosmetics firm NuWorld Beauty pose for a photo at the Korean firm's headquarters in Pankyo, south of Seoul, on Nov. 13, 2017, after signing a contract for the Korean firm to buy a 100-percent stake in the U.S. firm. (Yonhap)|
Hwi Won firstname.lastname@example.org