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Saturday April 26, 2014 MYT 4:15:00 PM
Saturday April 26, 2014 MYT 2:50:43 PM
by shinhye kang AND eunkyung seo
Can cosmetics and household products mix? We're about to find out as one South Korean conglomerate mulls on a takeover bid for an American beauty company.
LG Household & Health Care Ltd, a South Korean cosmetics and beverage company that also makes household cleaning products, is considering a bid for fragrance maker Elizabeth Arden Inc, as it looks to expand its reach by snatching up its rivals.
The Seoul-based conglomerate is looking at “big deals” on the domestic and international from, and that includes possibly buying over the American cosmetics company, says Lee In Ick, a spokesman for the LG Group unit.
LG Household would become a global luxury beauty company with the Elizabeth Arden deal, which could be valued at 1 trillion won (RM3.15bil) or more, plus goodwill, so says Maeil Business Newspaper citing an investment bank official.
LG Household plans to ally itself with institutional investors in South Korea to take a controlling stake in Florida's Miramar city-based Elizabeth Arden, before buying out the remaining shares, Maeil reported.
Elizabeth Arden is known for making celebrity-branded scents for pop stars Britney Spears and Justin Bieber. The company, which owns fragrance brands such as Halston, Guerlain and Nautica, cut its fiscal 2013 profit forecast in January, citing slower holiday sales. Elizabeth Arden, which earns 33% of its revenue from global markets including China, also pointed to weak international sales.
Meanwhile, LG Household, the maker of WHOO Hwanyugo skincare products, sells perfumes, fabric
deodorants and toothpaste, according to the company website.
Tags / Keywords:
Lifestyle, Elizabeth Arden, WHOO, LG Household
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