US-based beauty care products maker Coty Inc has formed a joint venture with South Korean sector company LG Household & Health Care Ltd (KRX:051900), or LG H&H, to extend their presence in the Korean cosmetics market, the parties announced today.
The creation of this JV, called Coty Korea, is an important step for Coty through which the company wants to grow its presence in Asia and to strategically expand its cosmetics and skin care operations on a global basis, it said. At the same time, the move strengthens LG H&H’s leadership in the Korean consumer market.
According to Coty Prestige president Michele Scannavini, Korea represents an important emerging market for the beauty sector. The newly-announced development may also be followed by other potential common projects abroad, LG H&H CEO Suk Cha said.
The parties did not provide information regarding the ownership structure of the venture or the amount they will invest in the new entity.
This autumn, the JV intends to introduce its beauty brand philosophy into the Korean marketplace, Coty said, adding that this brand is expected to play a crucial role in the expansion of its product portfolio. Furthermore, Coty Korea will continue to seek for opportunities to further grow and improve its presence in the market.
Coty is a beauty care products manufacturer with annual net sales of USD4.5bn (EUR3.7bn), about 12,000 employees and offices in New York, Paris and Geneva.