South Korea’s LG Household & Health Care Ltd. has acquired Physiogel’s business rights in Asia and North America for 125 million pounds ($161 million) from global pharmaceutical company GlaxoSmithKline in a move to enhance its dermo-cosmetics business.

LG Household & Health Care inked the 125 million-pounds deal with Stiefel Consumer Healthcare UK Ltd, a unit of GlaxoSmithKline, to own the European dermo-cosmetics brand Physiogel’s business rights in Asia and North America, the Korean company said in a regulatory filing on Thursday.

Physiogel was established by Germany-based Stiefel Laboratories, which GlaxoSmithKline took over in 2009. The brand earned 110 billion won ($91.4 million) in worldwide sales in 2018. Asia market accounted for over 60 percent of its global sales, with Korea contributing nearly 30 percent.

Dermo-cosmetics, also known as drugstore cosmetics, refers to specialized skincare products produced in consultation with dermatologists.

LG Household & Health Care plans to leverage Physiogel’s strong global presence to expand its dermo-cosmetics and personal care business at home and abroad.

The company has been active in strengthening the personal care business. It acquired New Avon, a leading social selling beauty company in North America last year, and Tai Guk Pharm, a local pharmaceutical company well known for a freckle treatment cream in 2017. It also bought the country’s leading dermo-cosmetics brand CNP Cosmetics in 2014.

On Friday, LG Household & Health Care gained 0.29 percent to trade at 1,376,000 won ($1,143.05) in Seoul as of 9:57 a.m.

By Lee Yoon-jae and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]