The move marks a quick entry into the U.S. market.
With the strong demand in the U.S. for Korean beauty products, Cosmecca Korea Co Ltd. has announced plans to buy 6,896,831 shares of cosmetics manufacturer Englewood Lab, Inc, for 57.76 billion won ($53.7 million), as a quick and expedient way to enter the U.S. cosmetics market. The shares were purchased from Englewood Lab’s CEO David Chung, who maintained a controlling interest in the firm.
Cosmecca Korea will now hold Chung’s 34.71 percent stake (6,896,831 shares) in Englewood Lab following the transaction.
Englewood Lab has factories in New Jersey and Incheon, west of Seoul. The official takeover is scheduled for early June. It is expected that Englewood Lab personnel other than Chung will remain in place.