Bain Capital in talks to buy Korean aesthetic device maker Ilooda

Ilooda, a South Korean medical aesthetic devices maker valued at around 200 billion won ($158 million), is likely to sell its management rights to US private equity firm Bain Capital LP, sources familiar with the situation said on Wednesday.

Bain is in talks to close the deal with a 20-30% control premium per share, according to sources. There is a chance that Bain will make a tender offer to acquire a controlling stake and delist Ilooda from the junior Kosdaq bourse, sources added.

Through the deal, Bain will expand the businesses of medical aesthetic device manufacturer Classys Inc. that the PE firm acquired last year, sources said. The Boston-based investment manager is striving to increase its share in the global anti-aging products market.

Bain has already made major deals in the Korean cosmetics industry. It led a consortium with Goldman Sachs to buy a 60.4% stake in Carver Korea, a company known for skincare brand AHC, at 430 billion won in 2016.

The consortium sold the controlling stake and Carver Korea Chairman Lee Sang-rok’s 35% stake at 3.2 trillion won to consumer goods giant Unilever the following year.

Bain also bought a 44.4% stake in botulinum toxin maker Hugel Inc. at 927.4 billion won in 2018 and sold it to Korea’s GS Group-led consortium for 1.7 trillion won in 2021.

Last year, the PE firm bought a 61% stake in Classys at 670 billion won.

Ilooda shares rose by 2.58% on July 19 to close at 9,940 won. The stock price has soared around 30% over the past month as rumors of the possible sale surfaced.

Founded in 2006, Ilooda develops laser and radiofrequency devices for anti-aging. The Kosdaq-listed firm posted 46.3 billion won in revenue last year, up 51% on-year. Its operating profit reached 8.3 billion won during the same period, soaring 102% on-year. It aims to surpass 50 billion won in revenue and 10 billion won in operating profit this year.

Some mid-sized PE firms in Korea are also eyeing acquisitions of medical aesthetic device makers. Premier Partners, a local fund manager, bought an 80% stake in dermal filler maker Vaim Co., at 80 billion won early this month. Premier aims to increase Vaim’s value to more than 300 billion won.

Write to Ye-Jin Jun at ace@hankyung.com

Jihyun Kim edited this article.