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Photo = Yonhap news |
[Alpha Biz= Paul Lee] LG Household & Health Care (LG H&H) has finalized the acquisition of the remaining 35% equity stake in U.S.-based color cosmetics brand The Crème Shop, bringing its total ownership to 100%.
According to the Financial Supervisory Service on May 29, LG H&H will acquire the remaining shares for KRW 91.9 billion through a ruling by the International Chamber of Commerce (ICC).
LG H&H initially entered into an agreement to acquire a 65% stake in The Crème Shop in 2022. However, a dispute arose regarding the price of the remaining 35% stake, due to differences between the put and call option valuations. This led both parties to seek ICC arbitration.
On November 29, 2023, LG H&H notified its intention to exercise its call option for the remaining 35% at a price of KRW 91.9 billion. However, the two major shareholders of The Crème Shop rejected the offer and filed a counterclaim asserting the validity of a put option valued at approximately KRW 178.7 billion.
The ICC arbitration panel ruled in favor of LG H&H, stating that the put option exercised by The Crème Shop’s major shareholders did not meet the contractual requirements, while LG H&H’s call option was valid and compliant with all conditions under the shareholder agreement.
With this acquisition, LG H&H solidifies its full ownership of The Crème Shop, strengthening its global presence in the color cosmetics market.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
