LG Chem Ltd. completed the sale of its aesthetic business division to Seoul-based private equity firm VIG Partners for 200 billion won ($145 million), representing a significant markdown from the company’s initial expectations.
The transaction, announced Wednesday, caps a months-long divestiture process that began earlier this year when LG Chem selected HSBC Securities as the lead manager for the sale. The chemical manufacturer had originally sought more than 500 billion won for the unit, but failed to attract major financial and strategic investors including Macquarie Asset Management, Affirma Capital and Glenwood Private Equity.
The aesthetic division, which operates within LG Chem’s Life Sciences unit, generated approximately 100 billion won in sales last year with earnings before interest, taxes, depreciation and amortization of around 25 billion won. The unit markets hyaluronic acid filler “YVOIRE” and skin boosters including “VIALPHAM,” “INEABLER,” and “VITALAN”.
The divestiture forms part of LG Chem’s broader portfolio restructuring strategy. The company aims to focus its Life Sciences division primarily on oncology, according to a company representative. This marks the second major asset disposal for the division, following the 2023 sale of its diagnostic business unit to Glenwood PE.
VIG Partners, established in 2005, has managed $3.5 billion of committed capital and invested in 29 portfolio companies across Korea. The firm recently invested in medical device company Viol in July, suggesting a strategic focus on healthcare-related acquisitions.
For LG Chem, the sale enables further concentration on higher-growth biotechnology segments including vaccine development and cancer therapeutics, areas the company has prioritized following its acquisition of US biotech firm AVEO Pharmaceuticals in 2023.
