이 기사는 2021년 03월 17일 08시06분 thebell에 표출된 기사입니다

Glenwood Private Equity (Glenwood PE) has acquired a minority stake in South Korean cosmetics chain CJ Olive Young in a deal that valued the company at 1.8 trillion won ($1.6 billion).

The Seoul-based firm will pay around 414 billion won for some 25% stake, including new shares issued by the company and shares held by members of the founder’s family. The deal will make the firm the second largest shareholder, with CJ Corp, the parent company of the beauty chain, retaining its controlling interest.

About 278 billion won will be paid to the founder’s family members, while the remaining amount will be injected into the company. Lee Sun-ho, the only son and heir apparent of CJ Group chairman Lee Jae-hyun, will retain his position as the third largest shareholder.

Glenwood PE will use its two blind-pool funds created in 2018 and 2020 and its co-investment fund to fund the investment. It will also raise 190 billion won, about 45% of the acquisition cost, in loans that will be arranged by Woori Bank.

CJ is expected to use the proceeds from a new share issue to expand Olive Young’s online and mobile business. The chain has a dominant position in the South Korean health and beauty market, with a 70% share and more than 1250 stores nationwide. However, its revenue is largely driven by offline channels.

Olive Young is preparing for an initial public offering (IPO), targeting a Seoul listing by 2022. Meanwhile, CJ and Glenwood PE are expected to focus on strengthening the chain’s position in the online beauty market to increase the value of the company.

The bidding process for the beauty chain started in the second half of 2020. Goldman Sachs Principal Investment Area, JKL Partners, IMM Private Equity, STIC Investments, Glenwood Private Equity, and Hyundai Department Store Group submitted final offers in December 2020.

Credit Suisse and Lee & Ko acted as financial and legal advisors to CJ, while Yulchon and Samjong KPMG acted as legal and financial advisor to Glenwood PE. (Reporting by Ar-rum Rho)