Silicon2 lands US$251.5M from CVC Capital to fuel K-beauty push abroad
What's the deal? Silicon2Dealroom has a profile for this one. Try Dealroom →, a South Korean K-beauty distribution company, has raised US$251.5M from private equity firm CVC Capital PartnersDealroom has a profile for this one. Try Dealroom →. The private placement was made through Starlink InvestmentDealroom has a profile for this one. Try Dealroom →, a special purpose vehicle set up by CVC.
The mechanics: Silicon2 is issuing 6,666,666 redeemable convertible shares at US$37.7 each — 9.23% of its total shares. The price sits 5.64% above the reference price of US$35.7.
What's the endgame? Silicon2 buys Korean indie cosmetics directly and supplies them to overseas distributors, handling local logistics, inventory, and marketing. It plans to use the funds to expand distribution and logistics infrastructure across Europe, the US, the Middle East, and Asia.
Why CVC? The firm manages roughly €212 billion across 30 offices and has invested actively in consumer and beauty companies. In South Korea, it has backed Pharma ResearchDealroom has a profile for this one. Try Dealroom →, known for its Rejuran brand, and Star Vision, which runs the contact lens brand OLENSDealroom has a profile for this one. Try Dealroom →.
A Silicon2 representative called the deal "a strategic partnership" to help the company "take another step forward as a global K-beauty distribution platform." (translated from Korean)
By the numbers: Silicon2 reported first-half revenue of US$628.1M on a consolidated basis, with US$209M from the EU. US sales rose to US$113.2M from US$67.5M a year earlier. The company is now expanding into the Middle East from a base in the United Arab Emirates, plus Latin America and Southeast Asia.
The signal: The round ranks in the 96th percentile of all-time non-VC private placements in South Korean marketing. That size, and CVC's track record with Korean beauty firms, points to growing global investor appetite for K-beauty distribution as the sector pushes beyond Asia.
Read more: eDaily
Image credit: Fresh Materials
