Cosmetics company Tonymoly has bought a 47.6-percent stake of Tai Guk Pharma, Korea’s largest external preparations maker to emerge as the latter’s largest shareholder.
Tonymoly토니모리(CEO: Bae Hae-dong배해동) announced its equity acquisition on Tuesday, taking over 5,826,051 shares of Tae Guk at 14 billion won ($12.4 million). Although Tonymoly became Tae Guk’s largest shareholder, it will reportedly leave the latter’s operation to the current management.
Tonymoly acquired Tai Guk태극제약(CEO: Lee Chang-koo 이창구) to start a derma-cosmetic business. It will produce functional cosmetics by combining its cosmetics manufacturing technology with Tae Guk’s medicinal making know-how to supply its products to pharmacies through Tae Guk.
Tai Guk is the nation’s largest maker of external application, including ointment, cream, and gel, and has been manufacturing about 300 products, including drugs, quasi-drugs, and health food, since its foundation in 1957.
Its Nos. 1 and 2 plants, located in Hyangnam, Gyeonggi Province, and in Buyeo, South Chungcheong Province, respectively, have the largest capacity to make skin solvents by producing 17 million pieces of 80 external application items a year.
The company won the European Union- Good Manufacturing Practice (EU-GMP) for external preparations for the first time in Korea. The company recorded 60 billion won in sales, and 2.5 billion won in operating profits last year.
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