South Korean medical aesthetics company Classys Inc. has acquired JL Health Participacoes S.A., a medical beauty device retailer in Brazil, one of its largest overseas markets, for 18.27 billion won ($13 million).
Classys, 54.16% owned by Bain Capital, said on Friday that the purchase of the largest aesthetic device retailer in South America is aimed at establishing a direct sales network in the region and accelerating its global expansion.
Under the terms of the transaction, Classys has secured a 77.5% stake in JL Health Participacoes following the spin-off of the Brazilian retailer’s non-beauty-related operations.
The all-cash deal also includes the acquisition of JL Health’s two subsidiaries, as well as a call option for Classys to purchase the remaining 22.5% stake.
Founded in 2007, Classys has built a strong market presence with its flagship beauty device, the Shurink Universe, which utilizes high-intensity focused ultrasound (HIFU) technology for skin tightening.
It commands over half of South Korea’s HIFU treatment device market.
DIVESTMENT ATTEMPT
The acquisition comes after Bain Capital’s failed attempt to exit Classys, which drew interest from other global private equity firms, including KKR & Co., Carlyle Group and Hillhouse Capital Group Holding.
In 2022, Bain Capital purchased Classys for 670 billion won, marking its third acquisition of a Korean beauty company amid the global boom in Korean beauty products.
In an effort to recoup part of its investment, the US private equity firm offloaded a 6% stake in the Korean company via a block trade.
Fueld by the global popularity of the K-pop and Korean TV series, as well as rising skincare spending, Classys has reported steady growth in both revenue and profit.
In the first half of this year, the company posted an operating profit of 82.2 billion won, up from 57.7 billion won in the year-earlier period.
Sales reached 160.4 billion won, compared to 109.1 billion won during the same period.
By Yeonhee Kim
yhkim@hankyung.com
Jennifer Nicholson-Breen edited this article.
