Prime Highlights
- CVC Capital Partners invested 215 million US dollars in Silicon2 through Starlink Investment for a 9.23% stake.
- Silicon2’s KOSDAQ shares briefly surged over 10% before settling at a 4.2% gain after the deal.
Key Facts
- Silicon2 is a K-beauty distributor expanding logistics and distribution across Europe, the US and other regions.
- CVC Capital Partners is a major shareholder of European retail giant Douglas.
Background
The distributor of K-beauty products, Silicon2, has received funding of 300 billion Korean won, which is around $215 million, from a global private equity firm named CVC Capital Partners for developing its international logistics and distribution business.
This is through the investment arm of CVC known as Starlink Investment, which will acquire 6.67 million shares of Silicon2 worth 9.23% of the company’s stock that have been priced at 45,000 won per share.
Following the announcement, Silicon2’s shares on the KOSDAQ market briefly surged over 10% before settling at a 4.2% gain by the close of trading.
In the second half of the year, Silicon2 reported revenue of 749.2 billion won, with the European Union contributing its largest share at 249.3 billion won. US revenue rose sharply during the same period compared with the previous year.
The company plans to use the funding and CVC’s global network to expand across Europe, the United States and the SWANA region, while continuing its push into Latin America and Southeast Asia. The investment is also expected to support closer ties with European retail giant Douglas, in which CVC holds a major stake, potentially opening new collaboration opportunities in Europe.
This agreement demonstrates increased foreign investor interest in K-beauty infrastructure that goes beyond just brand level into the entire logistics network of the industry. This comes after an international trend where K-beauty is experiencing great success and involves a lot of investments in North America, new products being created, great quarterly performance by top Korean cosmetic companies, and even a proposed K-beauty investment fund to be registered in America.
