Retail giant Shinsegae's food arm is venturing into cosmetics with a 50 billion won ($36 million) investment in C&C International, a Korean contract manufacturer, though it said it did not intend to directly involve itself in the business.
In a regulatory filing on Thursday, the company said it would acquire a 36.9 percent limited-partner stake in a private equity fund named Beauty Synergy 2025. The vehicle is managed by Ascent Equity Partners, which in August bought a 41.22 percent stake in C&C International for about 285 billion won.
Shinsegae Food stressed that the investment is a financial play, not a bid for control.
“This is a financial investment intended to diversify revenue streams and stabilize our earnings base,” a company official said, adding that the company was directing its efforts toward its core food operations while selectively investing in high-growth sectors.
The investment comes as Shinsegae Food continues to reshape its portfolio. In August, the company sold its catering unit to Korean food service giant Ourhome for about 120 billion won, part of a broader restructuring designed to streamline operations.
While the company has no immediate plans to integrate cosmetics into its food businesses, analysts note that financial investments in high-growth industries often open the door to deeper strategic ties over time.
C&C International is one of the more coveted players in Korean beauty's global supply chain, specializing in formulation and production for domestic and international brands. Last year, it reported revenue of 282.9 billion won, up 28 percent from a year earlier, although operating profit fell nearly 10 percent to 29 billion won.
minmin@heraldcorp.com
