Goodai Global poised to build L'Oréal-style empire via M&As

Goodai Global Inc. is seeking to acquire South Korea’s first-generation independent cosmetics brand Skinfood for about 150 billion won ($108 million), as the K-beauty startup accelerates its expansion through acquisitions to emulate L’Oréal SA’s growth model.

A consortium of Goodai Global and The Hahm Partners has been named the preferred bidder for Skinfood, according to people familiar with the matter. The seller is Pine Tree Partners, a local private equity firm.

Skinfood, founded in 2004, offers skincare and makeup products made from natural ingredients such as fruits, vegetables and botanical extracts.

The acquisition is expected to expand Goodai’s portfolio of indie Korean beauty brands, which already includes Beauty of Joseon, TIRTIR and Laka, as well as Craver Corporation, a K-beauty wholesale and marketing advisory firm.

Goodai has spent roughly 1 trillion won to acquire four cosmetics companies over the past year.

The company is also nearing a deal to acquire Seorin Company, the cosmetics company behind Round Lab’s popular Dokdo Toner, for about 600 billion won.

Founded in 2016, Seoul-based Goodai specializes in marketing and distributing K-beauty products. Its M&A-driven strategy has drawn comparisons to L’Oréal, which built its global cosmetics empire through aggressive dealmaking.

SUCCESS IN OVERSEAS MARKETS 

The company’s brands have found success overseas, fueled by the Korean pop culture wave, or Hallyu.

After its initial advance into China and Southeast Asia, Goodai has extended its footprint to North America via online marketplaces with active digital marketing and influencer partnerships.

In 2024, Goodai posted an operating profit of 140.7 billion won, more than double the prior year, on sales of 323.7 billion won, also more than doubled.

The firm has been actively partnering with private equity investors to fund its acquisitions. The Hahm Partners, Goodai’s consortium partner for the Skinfood deal, is a Seoul-based PE firm.

For the Seorin acquisition, Goodai has teamed up with Korean venture capital firm Company K Partners.

Goodai is also seeking to raise about 800 billion won in a pre-IPO funding round, targeting domestic and global private equity investors, according to sources.

They said the company is expected to use the proceeds to finance its acquisition of Seorin and additional cosmetic brands.

Write to Da Eun Choi at max@hankyung.com

Sookyung Seo edited this article.