Bain Capital and Goldman Sachs to buy Korean cosmetics firm Carver

US-based Bain Capital Private Equity and investment bank Goldman Sachs has agreed to buy a majority stake in Korean cosmetics company Carver Korea from existing shareholders. 

Following completion of the deal, Carver founder and chairman Lee Sang-rok will continue to hold a minority stake in the company and take part in the daily management activities.

The investment is aimed at boosting further domestic growth and drive overseas expansion.

Bain Capital Private Equity managing director Jonathan Zhu said: “Korea is a very attractive market with many innovative and globally competitive companies.

“We have been building Korean expertise into our Asia team and looking for investment opportunities.

“Carver Korea has an attractive portfolio of brands and significant opportunities for growth both domestically and internationally.”

Established in 1999 to supply specialty cosmetics to aesthetic salons, Carver currently has a skincare product portfolio,  which includes eye creams, essences and toners.

The company’s portfolio of beauty product brands includes its flagship skincare line Aesthetic Hydration Cosmetics (AHC).

Currently, Carver sells around 1,000 different cosmetics products in Korea, China and the US through various distribution channels, such as home shopping television networks, retail stores, duty-free shops, beauty salons, skincare clinics and internet commerce.

The increasing global demand for Korean beauty products is resulting in the growth of the local beauty industry.

According to Korea International Trade Association, since 2011, the average revenue of Korean cosmetics exports to China has grown at an annual compound annual growth rate (CAGR) of more than 50%.

Korea is estimated to be the second-largest exporter of cosmetics to China after France.

Since 1999, Goldman Sachs has been investing more than $2.5bn in Korea.