APR to absorb wholly owned subsidiary APR Factory

APR announced Wednesday that it will absorb its wholly owned subsidiary APR Factory through a merger.

APR Factory, in which APR holds a 100 percent stake, operates three production sites — one in Gasan, Seoul, and two in Pyeongtaek, Gyeonggi Province. The subsidiary has played a pivotal role in APR's value chain, spanning research and development, product planning, production and logistics.

The merger will proceed without the issuance of new shares, at a merger ratio of 1-to-0. The merger agreement is dated Sept. 16, with the merger set to take effect Dec. 31.

APR's ownership structure will remain unchanged after the merger, which is intended to improve management efficiency. The company said the move will streamline the allocation of human and material resources by absorbing the subsidiary, while cutting costs by consolidating overlapping management infrastructure. Simplifying the decision-making structure is also expected to help APR respond more nimbly to the fast-changing global beauty market.

APR Factory's role is expected to grow in importance going forward. Optimizing and upgrading production infrastructure will be key to the success of new businesses — including energy-based devices and skin boosters — as part of APR's efforts to diversify its business portfolio.

"This merger is a strategic decision to maximize organizational and operational efficiency and strengthen our core business competitiveness," an APR official said. "We will achieve growth in scale and profitability to enhance shareholder value."