IMM Private Equity (IMM PE) is accelerating efforts to bolster the corporate value of Able C&C, a Seoul-based cosmetics and household goods manufacturer, in hopes of turning the loss-reporting firm into another success story in the local mergers and acquisitions (M&As) market, following Hollys Coffee.
Able C&C said Thursday that it has appointed Shin Yoo-jung as head of its brand strategy department overseeing product development, platform operation, marketing and direct-to-consumer (D2C) marketing.
The private equity firm expects a performance equally stellar or even greater by the former CEO of Hollys F&B, or Hollys Coffee, who played a key role in the successful sale of the coffee franchise to KG Group in 2020 alongside the current Able CEO Kim Eugene. Kim is Shin's prodecessor at Hollys.
Shin's previous experience includes a variety of consumer satisfaction enhancement initiatives encompassing marketing, development, employee training and quality management.
She completed post-merger integration as Hollys CEO for the 10 months after the merger, shortly before joining the cosmetics firm. Shin's 11 years of experience at Procter & Gamble, an American multinational consumer goods producer, will help map out a strategy vital to revamp the stagnant firm, thereby advancing the prospect of higher bid prices in the years to come, said industry officials.
IMM PE purchased Able for about 188.2 billion won ($159.8 million) in 2017, but the corporate performance has since worsened. Able reported sales of 422.2 billion won in 2019, up from 345.5 billion won in 2018. But the figure sank to around 300 billion won last year. Operating profit swung back into the black in 2019, but regressed to a net loss of 68 billion won last year.
IMM PE sold a 93.8 percent stake in Hollys to KG Group for 145 billion won in September 2020, at nearly double its initial investment of about 82 billion won. The private equity firm put up 45 billion won in 2013 and drew 37 billion won in equity financing the following year.