Cosmax Establishes First European Production Base in Italy with Acquisition of Keminova

Combining K-beauty technologies with European clean and vegan manufacturing expertise
Operating production bases in six countries across Asia, North America, and Europe
Maximizing R&D and marketing synergies to accelerate expansion of global clients

Cosmax, the world's No. 1 cosmetics ODM (research, development, and manufacturing) company, has chosen Italy as its forward base to expand its push into Europe, the home of cosmetics. By acquiring a local Italian ODM company, Cosmax plans to secure a production base in Europe and further strengthen its dominance in the global market.

Cosmax announced on the 23rd that it has signed a share purchase agreement (SPA) to acquire a 51% stake in Italian cosmetics ODM company Keminova.

Founded in 1985, Keminova has accumulated 40 years of know-how and solid technological capabilities. The company is located in Brescia, about 100 kilometers from Milan. In particular, it is situated within "Beauty Valley," the heart of the European cosmetics industry where global cosmetics companies are clustered, making it easy to leverage the cosmetics value chain and secure highly skilled talent.

Keminova recorded sales of approximately 18 billion won last year, and its annual production capacity reaches about 20 million units, positioning it as a key asset for Cosmax's expansion in the European market.

Through this acquisition, Cosmax plans to create strong synergies by combining the strengths of the two companies. Cosmax will transfer its unrivaled K-beauty technologies and sales know-how to Keminova, while Keminova will provide its European-based manufacturing expertise and network, enabling the combined entity to gain stronger competitiveness in the European market.

Specifically, Cosmax has expanded its production base, which had been concentrated in Korea, China, and the United States, to Europe, allowing it to respond more swiftly to global demand for K-beauty. The company also plans to generate new revenue by proposing Cosmax's innovative formulations and technologies to European local companies, including Keminova's existing European clients.

Various technological exchanges are also expected. Since 2023, Keminova has been strengthening its own research and innovation capabilities, including the establishment of a microbiology laboratory. By collaborating with Cosmax's research network of about 1,100 global researchers, the two companies plan to accelerate the development of innovative products tailored to local European trends.

Keminova has specialized competitiveness in derma cosmetics, hair care, and medical devices. Based on this, it has secured as major clients leading derma and skincare brands in Italy, as well as brands backed by pharmaceutical companies. Cosmax plans not only to solidify cooperation with these existing clients, but also to introduce Keminova's technologies to Korean clients, thereby contributing to the technological advancement of K-beauty.

In particular, Keminova holds certifications for Quality Management Systems (ISO 9001), Cosmetics GMP (ISO 22716), as well as organic cosmetics certification (COSMOS), making it well suited to meet the exacting standards of European consumers. As there is still available space within Keminova's plant, Cosmax plans to actively respond to orders from European clients by expanding facilities in the future.

Lee Byungjoo, Vice Chairman and CEO of Cosmax BTI, said, "The acquisition of Keminova is more than just securing a physical base; it is a strategic combination where the long-standing cosmetics manufacturing know-how of the European market meets the innovativeness of the world's largest ODM company," adding, "By integrating the capabilities of both companies, we will rapidly elevate our position in the European market and further solidify our status as the global No. 1 cosmetics ODM company."

Meanwhile, Cosmax plans to fulfill precedent conditions, including approval from the Italian government, and finalize the transaction by sometime in March.