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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Taekwang Industrial announced on Friday that it will acquire mid-sized pharmaceutical company DongSung Pharmaceutical through a consortium with United Asset Management Company (UAMCO).
The company said its board of directors approved the acquisition on March 7. DongSung Pharmaceutical is a well-known Korean drugmaker that produces products such as the over-the-counter medicine Jeongro-hwan, hair dye brand Seven Eight, and the hair-loss treatment Minoxidil.
Through the acquisition, Taekwang Industrial aims to diversify its business portfolio beyond its traditional focus on chemicals and textiles and expand into the beauty and healthcare sectors. The total investment amounts to KRW 160 billion, including an acquisition price of KRW 140 billion and an additional KRW 20 billion earmarked for management normalization.
Taekwang Industrial has recently declared its entry into the cosmetics and consumer goods business, establishing a dedicated cosmetics subsidiary, Sil. With the acquisition of DongSung Pharmaceutical, the company plans to build a comprehensive beauty and healthcare platform encompassing pharmaceuticals, hair dyes, derma products, and haircare solutions.
Founded in 1957, DongSung Pharmaceutical is a 70-year-old drugmaker with strong brand recognition in the OTC and haircare markets. Taekwang Industrial plans to enhance DongSung’s product competitiveness by integrating its group-wide brand management capabilities, product planning expertise, and distribution channels.
The company also intends to increase investment in DongSung Pharmaceutical’s research and development. DongSung is currently conducting Phase 2 clinical trials for its anticancer drug candidate Fonogen, and Taekwang Industrial expects its investment to provide a more stable environment for the development of new drugs.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
