LG Household & Health revealed earlier this week that it’ll purchase a 56% stake in Boinca, a US-based firm that owns Arctic Fox, a high-end hair care model. It was reported that the deal for the acquisition is value $100 million.
LG Household & Health Care is shopping for to acquire a controlling stake in Boinca and improve its presence in North America. This is clearly a strategic acquisition to develop its gross sales via increasing its enterprise in abroad areas.
Boinca Inc.’s Arctic Fox is alleged to be a vegan idea model that was first established in 2014 in Gardena, California. It largely depends on social media for the digital advertising of its trend hair dye product line. It has over two million followers on Facebook, Instagram, and TikTok and has topped main e-commerce platforms comparable to Amazon, Sally’s Beauty, and Ultra Beauty.
The merchandise are standard among the many youthful MZ technology of shoppers and partly, that is due to the truth that it’s cruelty-free which signifies that the corporate is towards testing on animals. Its gross sales continue to grow with a reported annual common of 89% in the final three years.
“The world haircare market is estimated to be round ₩90 trillion,” Korea Joongang Daily quoted LG Household & Health Care as saying in a press release. “In the market, high-end hair care merchandise account for about 20% and Arctic Fox’s model recognition in the U.S. may assist LG’s family and well being care arm to enter the premium hair care market.”
This is LG Household & Health Care’s newest acquisition deal as in 2019, it additionally bought a 100% stake in New Avon, a magnificence agency that can also be primarily based in the United States. With this, the corporate stated the model introduced in 6.7 p.c of its whole gross sales final 12 months in North America whereas China contributed 16.5% of the entire.
In any case, Pulse News reported that LG Household & Health Care submitted the regulatory submitting on Tuesday, Aug. 31. Its acquisition of a stake in Boinca Inc. is anticipated to additional strengthen its competitiveness in the premium hair care product market.