L'Oréal acquires South Korean subsidiary of the Mibelle Group

In early February 2024, the Migros Group announced its intention to sell the Mibelle Group as part of its focus on its core business. Based on the ongoing sales negotiations, Migros is confident that L'Oréal will offer the South Korean Mibelle subsidiary Gowoonsesang the best opportunities for the future.

Matthias Wunderlin, Head of Migros Industrie (MIND), is delighted with this solution for the Korean company Gowoonsesang Cosmetics: "The acquisition by L'Oréal is a huge opportunity for Gowoonsesang. L'Oréal has concrete plans to further develop Gowoonsesang and has a wealth of experience in the Asian market."

“We are glad to welcome Gowoonsesang into the L’Oréal family and to contribute to bringing the best of Korean beauty to the world”, said Samuel du Retail, President of L'Oréal Korea. “Having the Dr.G brand and Gowoonsesang’s talented teams with us will further strengthen L’Oréal engagement with the Korean beauty ecosystem and allow us to expand the reach of K-beauty globally.”

The parties have agreed not to disclose the terms of the sale, including the price. The employees of Gowoonsesang will join L'Oréal. The transaction is expected to be completed in the coming months following approval by the regulatory authorities.

The next steps in the sales process

Even without Gowoonsesang, the Mibelle Group is an attractive, extremely innovative and well-positioned group of companies - with a focus on the European and North American markets. Sales negotiations are currently underway and offers have been submitted. "There is a lot of interest. We are therefore firmly convinced that the buyer will be a good fit for the Mibelle Group and that the Mibelle Group can continue to develop successfully under its new ownership", says Matthias Wunderlin. Migros expects to be able to announce the new owner in the first quarter of 2025.

About Gowoonsesang
Gowoonsesang Cosmetics Co. Ltd. was founded in 1998 and offers a wide range of cosmetic products and services specifically designed for sensitive skin. The Korean company was acquired by the Mibelle Group in 2018. Gowoonsesang is the home of the renowned Dr.G brand, one of the leading dermocosmetic brands in South Korea, as well as the vividraw, Lab.it and Heal us brands. The company employs some 200 employees in South Korea and around 10 employees in China. It exports to more than ten countries in the Asia-Pacific region as well as to the USA.

About L'Oréal
For 115 years, L’Oréal, the world’s leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as essential, inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 37 international brands and ambitious sustainability commitments in our L’Oréal for the Future programme, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality.

With more than 90,000 committed employees, a balanced geographical footprint and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, perfumeries, hair salons, branded and travel retail), in 2023 the Group generated sales amounting to 41.18 billion euros. With 20 research centers across 11 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 6,400 Digital talents, L’Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse.

More information on https://www.loreal.com/en/mediaroom

About the Mibelle Group
The Mibelle Group is active in the Personal Care & Beauty, Home Care and Nutrition segments. It produces and manages renowned brands, including Lee Stafford and B.tan. It is also a manufacturer of private label brands, including the well-known Migros own brands "I am" and "Handy". The globally successful Mibelle Biochemistry offers modern and effective active ingredients for the cosmetics industry.

The Mibelle Group employs around 1,600 employees in Switzerland, France, the UK, the USA and South Korea. It also has sales offices in the Netherlands, Australia and China.

Further information: www.mibellegroup.com

The Migros Group was supported in the transaction by Alantra as an M&A advisor and Walder Wyss as a legal advisor.