Anchor Equity Partners (Anchor Equity) has recently acquired two cosmetics companies, which is the firm’s first investment in the cosmetics sector in its history.
According to industry sources on April 16, Anchor Equity invested in derma cosmetics brand DermaFirm and cosmetics company W.Lab last year. The PE firm has become the second largest shareholder of DermaFirm and acquired a controlling stake in W.Lab. Anchor Equity has reportedly paid under 100 billion won to take over the two companies.
DermaFirm manufactures and sells high-functional cosmetics for hospitals. According to the company’s audit report, DermaFirm’s total stocks are comprised of 867,700 common stocks and 86,315 preferred stocks at the end of 2018, of which DermaFirm owner Peter Cha owns 732,300 common stocks, Timefolio Asset Management owns 86,315 preferred stocks and Blooming Springs Korea owns 47,700 common stocks.
Timefolio Asset Management converted its preferred stocks into common stocks in March 2019 and DermaFirm carried out capital increase with consideration and capital reduction without a refund after that. Anchor Equity seems to have bought shares of DermaFirm during the process. As of the end of 2019, Peter Cha had 65.79 percent, Daily Lifestyle Holdings (Anchor Equity) owned 15.38 percent, Timefolio Asset Management owned 7.09 percent and Blooming Springs Korea had 4.68 percent stake in DermaFirm.
Launched in 2014 W.Lab has expanded its business to China, Taiwan and Japan. W.Lab sells skincare and makeup products.
According to the operator of W.Lab, Wow Ventures’ audit report, Wow Ventures CEO Cho Hyun-ho owned 99 percent of Wow Ventures as of the end of 2018, before Anchor Equity invested in the company at the end of last year. As of the end of 2019, Wow Holdings (Anchor Equity) owned 70 percent and Cho owned 29 percent of the company. Moreover, Ahn Sang-gyun, a managing partner at Anchor Equity, has joined Wow Ventures’ board as a non-executive director.
Anchor Equity successfully exited Geo-Young and Health Balance last year. The PE firm is managing a portfolio composed of waste disposal companies and a portfolio composed of food ingredients companies.
(By reporter Han Hee-yeon)