PARIS (Reuters) - French cosmetics giant L'Oreal said on Monday it had agreed to buy Gowoonsesang Cosmetics, which includes South Korean skincare brand Dr.G., from Swiss retailer Migros.
The Korean beauty market is dominated by local brands known for being among the world's most innovative, and increasingly popular overseas as part of a trend for 'K-Beauty'.
Dr.G will meet rising demand for K-Beauty and effective yet affordable skincare, L'Oreal said in a statement, adding that it has a growing pan-Asian presence and global growth potential.
"We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world," said Alexis Perakis-Valat, global president of L'Oréal (EPA:OREP)'s consumer products division.
Reuters reported on Friday that L'Oreal and Migros were in final talks on a deal. Migros announced a strategic review of its Mibelle cosmetics group in February, saying it wanted to find a new home for the owner of Gowoonsesang and other brands.
L'Oreal did not give a valuation for the deal, which comes amid a slowdown in China, previously one of the fastest-growing beauty markets.
In 2018, it acquired South Korean makeup firm 3CE.