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[Alpha Biz=(Chicago) Reporter Kim Jisun] Daewon Pharmaceutical Consortium has acquired SD Biotech, a cosmetics and health functional food research and development (R&D) company.
Daewon Pharmaceutical announced on the 5th that the DSK consortium was notified by the Seoul Rehabilitation Court as the final prospective buyer of SD Bioengineering. Daewon Pharmaceutical, Koino and Suseong Asset Management are participating in the DSK consortium. It is heard that more than half of Daewon Pharmaceutical's stake is owned. Following the selection of the final buyer, Daewon Pharmaceutical is expected to proceed with the investment contract without signing a new contract. The acquisition cost is about 65 billion won. The DSK consortium plans to acquire 39 billion won worth of stocks and 26 billion won worth of corporate bonds through a newly established private equity fund.
SD Biotech is a cosmetics business such as mask packs and skincare. SD Biotech also has subsidiaries in charge of distribution, rental, packaging materials manufacturing, cosmetics visits and online sales. Six of them are in China, the United States, Vietnam and Indonesia.
SD Biotech has made hundreds of billions of won in annual sales, booming with sheet mask packs in China. However, as sales in China fell, it went under court receivership. The company is said to have been in acquisition negotiations with the DSK consortium as it began the corporate rehabilitation process in April due to operating losses, including a loss of 18.6 billion won in the first half of this year. Daewon Pharmaceutical is expected to utilize SD Biotech's assets to enter various new businesses, including cosmetics. Currently, Daewon Pharmaceutical's sales are mainly from professional medicine (ETC). General medicine (OTC) and consumer health care sales account for less than 10%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
