Hyundai HCN acquires 27.9 percent of SK Bioland
Hyundai HCN is acquiring 27.9 percent of SK Bioland, a Kosdaq-listed supplier of chemical ingredients for cosmetics.
SKC, which is 41.0 percent owned by SK Holdings, will be selling the stake for 120.5 billion won ($101.7 million) to Hyundai HCN, which is 11 percent owned by Hyundai Department Store. The sale was approved by SKC’s board of directors on Tuesday, and the deal will be completed by mid-October.
The deal comes as both companies restructure their operations.
SKC had acquired shares in the smaller company in 2015. It unloaded the asset because it had little direct connection to its future plans.
The company has recently been concentrating on two main pillars — mobility and semiconductors. In its push to focus on these areas, the company sold off a 27 percent stake in SKC Kolon PI, a polyimide film manufacturer, earlier this year in a 1-trillion-won sale.
SK Bioland generated 10.8 billion won in net profits and 106.3 billion won in revenues in 2019. Although its main strengths are in cosmetics, it also produces ingredients for health supplements and pharmaceuticals. The company runs five factories in Korea and has two regional offices in China.
For Hyundai Department Store Group, one of Korea’s largest retail conglomerates, the purchase is in line with its strategy to broaden its business portfolio, which in the past was largely concentrated on fashion and distribution.
“The merger with SK Bioland sets the ground for Hyundai Department Store Group to expand in the fields of beauty and health care,” the company said in a statement.
In May, Hyundai Department Store said it would get more seriously involved in the cosmetics market when its Handsome brand acquired a 51 percent stake in a Cleangen Cosmeceuticals, a manufacturer of functional skin care products.
Hyundai HCN, which will take SK Bioland under its wing, is a cable TV operator. According to the group, this subsidiary was chosen as the direct investor in SK Bioland for its abundant cash and its role as a pioneer in new businesses.
SK Bioland’s expertise in health care and pharmaceuticals is of interest to Hyundai Department Store, which hinted of additional investments in a Tuesday statement.
“As for SK Bioland’s health supplement business, we’re searching for potential mergers and acquisitions opportunities that would create synergy with the business’s expertise in producing basic materials,” Hyundai said.
“In the bio medical segment as well, we’re planning on investments to expand hires to maximize synergy with [SK Bioland’s] research and development ability.”
BY SONG KYOUNG-SON [firstname.lastname@example.org]