PARIS — L’Oréal is diving into K-beauty with the acquisition of the totality of Nanda Co. Ltd., the South Korean lifestyle makeup and fashion company that includes the hot Stylenanda makeup range.
Terms of the deal were not disclosed.
Stylenanda was started by So-Hee Kim in 2004 as a fashion activity that then developed into more of a makeup business, led by its 3CE color-cosmetics brand, which generates more than 70 percent of the total business. Last year, Nanda generated 127 million euros in sales and had almost 400 employees. It operates in South Korea as well as overseas markets such as Japan, Hong Kong, Singapore, Malaysia and Thailand.
L’Oréal said in a statement that Stylenanda “is a highly desirable brand among [South] Korean and Chinese Millennials.” Its distribution channels include e-commerce, specialty retailers, department stores sales points and duty-free outlets.
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“Stylenanda captures Seoul’s vibe, edge and creativity,” said Alexis Perakis-Valat, president of L’Oreal’s Consumer Products Division, in the statement. “It is perfectly positioned to nourish the growing appetite for makeup of Millennials in [South] Korea, China and beyond.”
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“With this acquisition, L’Oréal Korea will substantially reinforce its presence in the accessible makeup market. We are very proud to welcome the group’s first Korean beauty brand and contribute to [bringing] Korean beauty and style to the rest of the world,” said Yann Le Bourdon, president of L’Oréal Korea.
L’Oréal said that with the acquisition, it “plans to expand the sales of 3CE internationally.”
For Stylenanda, being part of the French beauty giant allows for international expansion and the possibility of “becoming a world-renowned brand to lead global trends in beauty,” according to Kim, founder and chief executive officer of Stylenanda.
L’Oréal is the second leading beauty player to snatch up a Korean beauty brand in the last few months. Last September, Unilever bought skin-care business Carver Korea for 2.27 billion euros from Bain Capital Private Equity and Goldman Sachs.
Carver was founded in 1999 as a supplier of professional products to beauty salons, and in 2016 had sales of 321 million euros and EBITDA, or earnings before interest, taxes, depreciation and amortization, of 137 million euros.
According to Unilever, Carver is now the fastest-growing skin-care business in South Korea via sales of its brand AHC, which markets antiaging, hydration and nourishment products. Its star product is called Eye Cream for Face, and AHC also offers essences, toners, moisturizers, masks and sun protection.