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Unilever steps up beauty push with $2.7 billion Carver Korea deal

Unilever steps up beauty push with $2.7 billion Carver Korea deal

Focusing on the Carver Korea deal, Ed Han, Bain Capital Private Equity managing director, said: "This has been a great opportunity for us to partner with a leading Korean company in an exciting segment of the cosmetics space and to help support its brand, operations and growth around the world".

Consumer goods giant Unilever plc (UN, ULVR.L, UL) Monday said it has agreed to acquire Carver Korea, a skincare business in North Asia, for 2.27 billion euros from Bain Capital Private Equity and Goldman Sachs.

The contract also marks the largest merger and acquisition deal ever for a South Korean cosmetics firm.

Bain and Goldman Sachs had jointly bought around 60 per cent stake in Carver Korea previous year for around $500 million.

The deal, which was confirmed on Monday (25 September), is another step in Unilever's shift towards personal care products and away from its food business, after it was subjected to a failed £115bn takeover bid from Kraft Heinz in February. Carver, with sales of 321 million euros past year, makes moisturizers, toners and sun protection creams. Past year it embarked on a restructuring aimed at making its local units more responsive to trends in their markets and is employing its own social-media influencers while also buying local brands. In 2015, Carver posted total sales of about $130 million. That year, according to Unilever, the Korean company reported €321 million in sales and €137 million in earnings before interest, taxes, depreciation and amortization.

Unilever agreed to pay 2.27 billion euros ($2.7 billion) for one of South Korea's biggest makers of beauty products, seeking a larger slice of a booming business fueled by its links to the country's pop stars and TV actors. Bain Capital agreed to invest about $816 million in beauty-products maker Hugel Inc.in April, after Goldman and Bain bought a majority stake in Carver past year. AHC's products include moisturizers, toners and sun protection.

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