L Capital to invest $50m in Clio

L Captial, an investment firm associated with LVMH Moët Hennessy Louis Vuitton SE, has plans to invest $50m in South Korean cosmetics firm Clio.

For the first time a luxury goods company is investing in the South Korean cosmetics industry.

An agreement is expected to be signed next week, reported Koreaherald.com.

The beauty company plans to become a public entity by the end of this year.

It will issue redeemable convertible preference shares which L-Capital intends to acquire.

LVMH intends to increase its footprint in the cosmetics and fragrance industry.

It owns nine beauty brands including Fresh and Make Up For Ever.

Clio's sales have grown twice in a year, surging from KRW50bn in 2014 to KRW107bn in 2015.

Set-up in 1993, it sells colour cosmetics that comprise compacts, eye make-up, lip gloss, whitening creams, BB creams, cosmetic pencils, and skincare products.