VT, a company specializing in beauty product development, has strengthened its cosmetics business through the acquisition of Riddle Shot's manufacturer.
On the 22nd, VT announced through a public disclosure that it will acquire 50.27% of the shares of ENC, which produces Riddle Shot.
VT will incorporate ENC as a consolidated subsidiary by using 27.53% of the Cube Entertainment shares it holds along with some cash. Although VT's shareholding will decrease from 37.59% to 10.06% after selling shares to Cube Entertainment CEO Kang Seung-gon, it is expected that there will be little change in operating profit on a consolidated basis.
The main purpose of this acquisition is to establish a stable production line and strengthen security through vertical integration of Riddle Shot-related product manufacturing. Additionally, by acquiring shares, immediate and organic volume response to the increasing demand for Riddle Shot product lines in global markets outside Japan will be possible. VT also plans to continuously expand new global channels, including the U.S. market.
VT plans to acquire an additional 80% stake in VT Cube Japan during the third quarter to fully make it a subsidiary. Through this, VT intends to further strengthen clean management by vertically integrating companies related to cosmetics.
A VT official stated, “With this governance restructuring, our company will strengthen responsible management as a cosmetics company centered on CEO Jeong Cheol, while Cube Entertainment will strengthen responsible management as an entertainment company centered on CEO Kang Seung-gon,” adding, “The two companies plan to maximize synergy effects through collaboration between K-Beauty and K-Pop.”
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