L’Oréal (EPA: OREP) announced on Monday that it has reached an agreement to acquire Gowoonsesang Cosmetics, the parent company of South Korean skincare brand Dr.G, from Swiss retailer Migros. The move aims to strengthen L’Oréal’s presence in the booming K-Beauty market, which is renowned for its innovation and global popularity.
In a statement, L’Oréal highlighted the growing demand for K-Beauty products, emphasizing Dr.G’s skincare line as both effective and affordable. The company sees significant growth potential for the brand, particularly in Asia and other global markets.
This acquisition follows Migros’ review of its Mibelle cosmetics division earlier this year, which sought new ownership for Gowoonsesang and its affiliated brands.
Though the financial terms of the deal remain undisclosed, it comes as China’s once-thriving beauty market shows signs of slowing down. This acquisition marks L’Oréal’s second significant investment in South Korea’s beauty industry, following its purchase of makeup brand 3CE in 2018.
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