Key Takeaways
- • CVC Asia VI has agreed to acquire an approximately 9% stake in Silicon2, the leading global K-beauty distributor, via a primary issuance of Redeemable Convertible Shares, according to CVC Capital Partners.
- • The transaction values Silicon2 at an enterprise value of approximately US$2.1 billion.
- • Reported investment amounts vary by outlet: KRW300 billion, roughly US$213M to US$220M, reflecting currency conversion differences.
- • Silicon2, founded in 2002, serves more than 3,300 customers in 177 countries across 600+ brands, primarily via its online wholesale platform StyleKoreanKbeautyWholesale.com.
- • Proceeds are earmarked for global expansion, supply chain optimisation, and professionalisation of the founder-led business.
Summary
CVC Capital Partners announced that CVC Asia VI has agreed to acquire an approximately 9% stake in Silicon2, a South Korean-founded distributor of K-beauty products, through a primary issuance of Redeemable Convertible Shares. The transaction values Silicon2 at an enterprise value of approximately US$2.1 billion, according to the CVC announcement.
Established in 2002, Silicon2 offers more than 600 brands to over 3,300 customers across 177 countries, primarily through its online wholesale platform, StyleKoreanKbeautyWholesale.com. Its customer base includes large retailers such as Boots, Sephora, Ulta, Rossmann, Superdrug and iHerb, as well as small and medium-sized retailers and sub-distributors.
CVC said the capital will support Silicon2's continued global expansion, supply chain optimisation, and professionalisation. EC Cho, Senior Managing Director and Co-Head of CVC Korea, described Silicon2 as a high-quality, founder-led business with a leading position in the rapidly growing global K-beauty market, and said CVC's experience internationalising businesses and its global network would help the company reach its full potential.
Additional coverage put the investment at KRW300 billion, which outlets converted to between roughly US$213 million and US$220 million. Some reports describe the funds as accelerating Silicon2's international logistics and distribution. Silicon2 is listed on the KOSDAQ under the ticker 257720, according to one outlet's report.
Established in 2002, Silicon2 offers more than 600 brands to over 3,300 customers across 177 countries, primarily through its online wholesale platform, StyleKoreanKbeautyWholesale.com. Its customer base includes large retailers such as Boots, Sephora, Ulta, Rossmann, Superdrug and iHerb, as well as small and medium-sized retailers and sub-distributors.
CVC said the capital will support Silicon2's continued global expansion, supply chain optimisation, and professionalisation. EC Cho, Senior Managing Director and Co-Head of CVC Korea, described Silicon2 as a high-quality, founder-led business with a leading position in the rapidly growing global K-beauty market, and said CVC's experience internationalising businesses and its global network would help the company reach its full potential.
Additional coverage put the investment at KRW300 billion, which outlets converted to between roughly US$213 million and US$220 million. Some reports describe the funds as accelerating Silicon2's international logistics and distribution. Silicon2 is listed on the KOSDAQ under the ticker 257720, according to one outlet's report.
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