Goodai Global divests LAKA amidst underwhelming performance
The divestment reflects a willingness to recalibrate their portfolio based on performance and market potential to ensure sustainable growth in their broader business strategy.
SOUTH KOREA – Goodai Global, a Korean beauty & cosmetic speciality distribution company, is divesting its colour cosmetics brand LAKA following underperforming growth performance.
The decision comes just over a year after Goodai acquired an 88% stake in LAKA Cosmetics in June 2024 for 42.5 billion won(USD 30.6 million).
The company has initiated the sale of its management equity in LAKA, aiming to complete the transaction by the end of August 2025.
A prospective buyer is reportedly the founder of another brand under Goodai’s portfolio, Tirtir.
The sale price for LAKA is set at approximately 53 billion won (USD 38.1 million), which indicates a profit of around 10 billion won (USD 7.2 million) within the brief holding period.
However, Goodai Global’s internal assessment concluded that LAKA did not meet the expected growth potential or brand power initially anticipated at acquisition.
This move is part of a broader strategic restructuring by Goodai Global, which has been aggressively expanding its portfolio of beauty brands through acquisitions, including Round Lab, Skin Food, and others.
While some brands like Tirtir and SKIN1004 are rapidly growing and gaining traction, LAKA’s performance has lagged, prompting the decision to divest.
Financial investors involved in Goodai Global’s recent funding rounds have also been informed about LAKA’s lacklustre growth prospects, influencing the sale decision.
A representative from Goodai Global acknowledged the sale process and expressed that the company initially believed LAKA had sufficient brand strength but eventually concluded the brand did not reach the expected level.
Despite this divestment, Goodai Global continues to focus on expanding and nurturing its higher-performing brands as part of its ambition to become a significant global player in the cosmetics industry, akin to the Korean version of L’Oréal.
Recently, Goodai Global secured a USD 610 million investment, valuing the company at USD 3 billion ahead of its planned IPO within three years.
The funds were raised through convertible bonds from major South Korean private equity firms, including IMM Private Equity and Premier Partners.
This capital will support Goodai Global’s aggressive acquisition strategy, which has included high-profile purchases such as Round Lab and Skinfood, expanding its portfolio of K-beauty brands.
Since its founding in 2015, Goodai has driven significant earnings growth, with EBITDA expected to rise from 130 billion won (USD 93.3 million) in 2024 to 450 billion won (USD 323 million) in 2025.
The company aims to emulate global giants like L’Oréal by diversifying and expanding its brand presence worldwide.
Market analysts expect the IPO to potentially increase Goodai’s enterprise value to as much as 10 trillion won(USD 7.19 billion), strengthening its position in the global cosmetics market.
