L Capital Asia, a private equity vehicle owned by luxury goods producer LVMH, is investing $50m in South Korea-based cosmetics company Clio Cosmetics, the Wall Street Journal reported on Thursday.
The investment will value Clio at $700, giving L Capital a 7% stake, according to a person familiar with the matter. Groupe Arnault, the family holding company of LVMH chief executive Bernard Arnault, is also set to invest in Clio alongside the firm.
Clio sells beauty products such as make up, eyeliner, lipstick and skincare products through retail stores as well as its own Club Clio outlets. It sells around 55% of its products in its home country and a further 35% in China.
L Capital will be Clio’s second largest investor following the close of the deal, behind founder Han Hyun-oak who will maintain a majority stake in the company.
Han told WSJ Clio hopes to leverage LVMH’s retail distribution capabilities, store management expertise and international marketing reach to expand in the US and Europe.
Han said the firm “has a long history in managing distribution channels in China, and I think we can become much stronger based on their support,” adding that it is now preparing for an initial public offering that could take place as early as November this year.
– Image courtesy of Clio Cosmetics