CDIB seals back-to-back Taiwan & Korea deals

The Hong Kong-based firm’s investments in World Gym Taiwan and L&P Cosmetic will back the companies’ regional expansion plans.

CDIB Capital has struck two acquisitions in the last week, acquiring L&P Cosmetic, a Seoul-based facial skincare company, and World Gym Taiwan, which owns the franchise and operating rights of the World Gym brand in the Greater China region.

The Hong Kong-based firm made the investments through its 2015-vintage CDIB Capital Asia Partners Fund which closed on $405 million in July 2016. Through the fund, CDIB will provide growth capital and operational assistance to companies in China and the Asia Pacific region that offer Chinese cross-border opportunities

CDIB did not provide financial terms of the transactions.

World Gym Taiwan owns and operates the largest fitness centre chain in Taiwan with 46 locations and over 250,000 members. The investment in World Gym Taiwan will be used to double its footprint locally as well as in Asia over the next two years while gearing up for an initial public offering. Following the investment, the company will remain majority-owned by its president John Caraccio and CEO Michael Sanciprian, CDIB said in a statement.

Similarly, the firm’s investment in L&P Cosmetic will be used for regional expansion in Japan and South-East Asia, as well as in the Middle East, Europe and Americas. L&P specialises in facial sheet masks and mask pack products under its well-known brand, Mediheal. The company has achieved explosive growth on the back of product popularity amongst Korean consumers adopting sheet masks in their daily facial beauty routine. It is also a leading player in the product category in Korea as well as the leading Korean brand in the China market.

CDIB Capital was established in 2006 as the private equity arm of China Development Financial. The firm manages over $1.2 billion of assets and has invested in more than 30 companies in Asia and the US.