L’Oreal has acquired Dr.G, a skincare company from South Korea, as part of a skincare partnership with Migros

The French cosmetics giant L’Oreal (OREP.PA) announced on Monday that it had reached an agreement to acquire Gowoonsesang Cosmetics, which comprises the South Korean skincare brand Dr.G., from Swiss retailer Migros.

The Korean beauty market is primarily dominated by local brands that are renowned for their innovation and are becoming increasingly popular overseas as part of the “K-Beauty” trend.

In a statement, L’Oreal stated that Dr.G will address the increasing demand for effective yet affordable skincare and K-Beauty. The company also noted that it has a rising pan-Asian presence and global growth potential.

“We have been monitoring the brand and its success for an extended period of time, and we are eager to accelerate its expansion in South Korea and the rest of the world,” stated Alexis Perakis-Valat, global president of L’Oréal’s consumer products division.

L’Oreal and Migros were in the final stages of negotiations for a transaction, according to Reuters on Friday. The Mibelle cosmetics group was the subject of a strategic review by Migros in February. The company stated that it was seeking a new location for the proprietor of Gowoonsesang and other brands.

L’Oreal declined to provide a valuation for the transaction, which takes place in the midst of a downturn in China, which was previously one of the most rapidly expanding beauty markets.
It acquired 3CE, a South Korean cosmetics company, in 2018.