Huons Global Vice Chairman Sung-Tae Yoon made a bold decision to strengthen the group’s portfolio and sustain future growth by expanding the non-pharmaceutical business.
Huons Global Co., Ltd. (CEO Sung-Tae Yoon) announced on the 4th that it has signed a main contract for the acquisition of’Blossom M&C’. The total acquisition amount is 58 billion won. Among them, the Huons Global Consortium is planning a paid-in capital increase (38 billion won) and corporate bond issuance (20 billion won).
Earlier, on the 18th, Huons Global consortium was selected as the preferred negotiator for Blossom M&C’s’M&A bidding by attracting external capital such as paid-in capital increase to a third party’ and signed a memorandum of understanding (MOU) regarding the acquisition.
Afterwards, Huons Global proceeded with follow-up procedures such as detailed due diligence on Blossom M&C, and the acquisition contract was finalized after consultations on detailed conditions related to the acquisition were completed.
Huons Global’s strategy is to increase the efficiency of the aesthetic business through the acquisition of Blossom M&C, maximize the creation of synergy, and actively respond to the spread of non-face-to-face consumption culture due to the prolonged COVID-19.
In particular, the acquisition is expected to create new business through business linkages between Humedix, a subsidiary that conducts aesthetic business, and Huvena, a cosmetic and medical container business company. The idea is to create a business structure that combines Huvena’s high-quality cosmetic containers and Blossom M&C’s cosmetic accessories business with cosmetic ingredients developed and produced with Humedix’s own technology.
In addition, 100%-owned subsidiaries Blossom Pictures Co., Ltd. and Blossom Story Co., Ltd. are utilized to reinforce their own aesthetic brand marketing by linking with movies and dramas, while linking the Over The Top (OTT) platform and intangible in the long run. It plans to diversify its business into cultural contents, an asset.
An official from Huons Global explained the background, “We secured new growth resources in the upcoming post-corona era, and promoted the acquisition by evaluating high expectations and possibilities for the recovery trend of the cosmetics industry, which was somewhat contracted by the corona.”
An official said, “In addition, after signing the main contract for the acquisition of Blossom M&C, the follow-up work is smoothly proceeding. We will try to make a successful M&A case,” he said. “As the acquisition decision was made in the future in terms of expanding the cosmetics and aesthetics market and expanding the business area, we will focus on maximizing results through synergy creation.”
On the other hand, Blossom M&C, which joins the Huons Group as a family company, is a KOSDAQ listed company that specializes in cosmetics subsidiary materials that produce, manufacture, and export cosmetic accessories such as makeup sponges and puffs. It has a one-stop production line that can produce the only NBR material product in Korea by itself, and possesses high competitiveness in the field of research and development, such as holding 110 domestic and overseas patents related to cosmetic accessories. Its main clients include Amorepacific, L’Oreal, Lancome, Yves Saint Laurent, La Mer and Shiseido. As of 2020, makeup NBR sponge occupies the No. 1 market share in the domestic market, and the cumulative sales in 2020 (based on September cumulative consolidated) were 25.9 billion won, an increase of 9.6 billion won from the same period last year. It is currently undergoing corporate rehabilitation procedures.
Online JoongAng Ilbo