South Korea’s DongKook Pharmaceutical nabs natural extracts specialist ReBom Cosmetics
South Korea’s DongKook Pharmaceutical acquires ReBom Cosmetics, a company specializing in cosmetics R&D and exports. DongKook will purchase 96,600 shares of ReBom Cosmetics for 30.6 billion KRW (US$23 million), netting a 53.6% stake. This move is part of the company’s strategy to diversify its business.
DongKook Pharmaceutical CEO Jun-ho Song expects synergies from the deal: “DongKook’s expertise in natural extract technology and herbal medicine development merges with ReBom Cosmetics’ research and manufacturing know-how.”
“We will develop competitive products to showcase the excellence of K-beauty, not only in Korea but globally.”
ReBom Cosmetics is an original design manufacturing company (ODM) founded in 2010. It oversees more than 150 clients and exports to 34 partners across 26 countries.
Established in 1968, DongKook Pharmaceutical entered the cosmetics market in 2015 with the launch of the derma-cosmetic brand Centellian24. The brand’s core ingredient is a titrated extract of centella asiatica, based on its specialization in developing plant-based raw materials over the last 50 years.
DongKook expects to cut production costs by manufacturing its cosmetics directly thanks to the acquisition. Until now, its items including Centellian24 were produced through Kolmar Korea.
ReBom Cosmetics is recognized for its production quality, receiving Current Good Manufacturing Practice approval in 2016, Cosmetic Good Manufacturing Practice (ISO22716) certification in 2017 and Halal certification in 2019.
South Korean companies continue to flourish in China as well. Last week, South Korea’s Cosmax announced it is building a new headquarters in Shanghai’s Xinzhuang Industrial Park to integrate research, production and marketing for its cosmetics ODM business.
Globally, the focus on K-beauty is more pronounced than ever. A recent report by Landing International found that North Americans are keying into K-beauty products, with mothers driving the latest wave of growth. The Los Angeles firm analyzed the impact of K-beauty on US consumers and identified growth opportunities for retailers.
