[THE INVESTOR] GDK Cosmetics, South Korea’s No. 1 facial mask manufacturer, is in talks with local private equity firm Quintessa Investment to sell its majority stake in a deal that could be worth over 100 billion won (US$89.6 million), the company said Aug. 25.

The cosmetics company seeks to sell a 56 percent stake in the company, including 44 percent stake owned by GDK Cosmetics founder Kim Sung-ho and 12 percent owned by L&P Cosmetics. 


“The largest shareholder is currently negotiating the acquisition deal with Quintessa Investment,” an official at GDK Cosmetics told The Investor.

Established in 2003 as an original equipment manufacturer, GDK Cosmetics is the supplier of the country’s top facial mask brand Mediheal. The firm’s major clients include AmorePacific and Charmzone.

Buoyed by the growing popularity of flagship dermal mask products, GDK Cosmetics saw over 200 percent sales growth to post 81 billion won in 2015. Operating profit surged 637 percent to 15.3 billion won.

Quintessa Investment, which aims to ink the deal next month, is raising funds from multiple institutional investors including MG Community Credit Cooperatives.

By Park Han-na (hnpark@heraldcorp.com)