IMM PE Plans to Partially Sell A’pieu Cosmetics Brand

IMM Private Equity (IMM PE) is planning to sell A’pieu, a cosmetics brand owned by Korean beauty company Able C&C, separately. This sale is an alternative strategy after the failure of the overall sale of Able C&C. According to public information, IMM PE has officially appointed Samjong KPMG as the chief financial advisor for the transaction and has sent a notice letter to potential buyers. The sale is expected to bring a valuation of approximately 20 billion won (approximately US$14.4 million) to the A’pieu brand.

A’pieu is one of the important youth brands under Able C&C, accounting for about 10% of the company's overall sales. According to 2023 data, Able C&C's total sales are 264 billion won. IMM PE first entered Able C&C in 2017 by acquiring the founder's equity. At that time, the acquisition ratio was 25.5%. Since then, it has gradually increased its holdings and currently holds 61.5% of the shares, with a total investment of more than 420 billion won.

In the past two years, IMM PE has been looking for ways to exit Able C&C. It has tried to sell the company as a whole, but failed to complete the transaction due to obvious differences between potential buyers and sellers in valuation and future performance expectations. In order to improve the feasibility of the transaction and accelerate the progress of capital recovery, IMM PE decided to adopt a "spin-off sale" strategy, first disposing of its brand A’pieu, and may further dispose of or integrate the remaining assets, including the company's core brand Missha and other sub-brands such as Chogongjin and Stila.

Able C&C has carried out large-scale organizational restructuring and brand rationalization adjustments under the leadership of IMM PE. In recent years, it has focused on overseas markets, especially Japan and the United States, with export sales accounting for more than half. Exports accounted for 58.3% in the first quarter of 2023, and overseas growth successfully offset the impact of the weak Chinese market. Against the backdrop of cost control and channel streamlining, although the company's overall revenue has stabilized, operating profit has continued to recover, increasing from about 10 billion won in 2022 to 11.4 billion won in 2023, achieving two consecutive years of profitability.

The sale of A'pieu will be an important step for IMM PE to achieve its exit goal. From the market feedback, A'pieu, as a brand with a low-to-medium price and a young positioning, has a stable audience and a certain acquisition appeal, which may attract the attention of medium-sized beauty groups or regional retail capital. If the transaction is successfully completed, it will help IMM PE to partially recover funds and provide a basis for overall exit or capitalization through IPO in the future.