L’Oréal Groupe announced on Monday, December 23, that it has signed an agreement with Swiss retail group Migros to acquire its subsidiary Gowoonsesang Cosmetics Co, Ltd, including Dr.G, a Korean skincare brand founded by dermatologist Dr. Gun Young Ahn in 2003 and headquartered in Seoul.
Dr.G will become part of L’Oréal Groupe’s Consumer Products Division (CPD). The French beauty giant said it wants to meet the rising demand for K-Beauty around the world by developing scientifically-based, effective and yet affordable skincare solutions.
According to L’Oréal Groupe, Dr.G has become as one of South Korea’s leading skincare brands with a growing pan-Asian presence and global growth potential. Its product portfolio includes ingredient-led skincare with targeted product lines such as the best-selling R.E.D Blemish Clear Soothing Cream. With a diversified omni-channel sales mix across the most prominent online and offline retailers in South Korea, Dr.G consistently ranks among the top three mass market and dermocosmetic skincare brands [1] in the country.
“We are delighted to welcome Dr.G into the L’Oréal Groupefamily. Created by a dermatologist and offering high-performing solutions suitable for even the most sensitive skins, Dr.G perfectly complements our existing skincare portfolio,” said Alexis Perakis-Valat, Global President of L’Oréal’s Consumer Products Division. “We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world, staying true to our mission to democratize and premiumize beauty by bringing the best of Korean skincare to consumers everywhere.“
“We are thrilled that Gowoonsesang Cosmetics is joining L’Oréal“, said Dr. Gun Young Ahn, M.D., Ph.D. Dermatologist, Founder of Gowoonsesang Cosmetic. “We believe that becoming part of L’Oréal will serve as a significant turning point in the global realization of our mission.”
“Following the successful acquisition of 3CE, we are glad to welcome a second Korean brand into L’Oréal and contribute to bringing the best of Korean beauty to the world,” said Samuel du Retail, President of L’Oréal Korea. “Dr.G is a well-known brand founded by a Korean dermatologist, rooted in his vision that everyone deserves healthy skin. Having Dr.G brand and Gowoonsesang talented teams with us will further strengthen L’Oréal engagement with the Korean beauty ecosystem and allow us to expand the reach of K-Beauty globally.“
The transaction is expected to be completed in the next few months after regulatory approvals and other customary conditions.
In February last year, Swiss retail giant Migros said it wanted to refocus on its core business with the aim to invest more than eight billion francs in the modernization of its supermarkets. To this end, the sale of several related activities was undertaken, in particular that of its cosmetics and household products production businesses.
