Bain Capital agreed to invest about $US816 million ($A1.07) in Hugel to gain control of the South Korea-based maker of beauty products, including the botox anti-wrinkle treatment.
Bain will pay 354.7 billion won ($A411 million) for 985,217 new shares in Hugel and 100 billion won in convertible bonds, according to regulatory filings and an emailed statement from Hugel. The new stock is priced at about 360,000 won a share, 1.1 per cent less than the April 14 closing price.
Bain will acquire a large stake in Korean botox player. Photo: BraunS
Bain, which is also in talks to buy Hugel’s largest shareholder Tongyang HC for 472.8 billion won, will own 45.3 per cent of Hugel if the transactions are completed as planned.
The deals would give Bain control of a supplier with an estimated 30 per cent of the botulinum toxin market in South Korea, a global leader in cosmetic procedures and surgery.
The Boston-based private equity investor agreed to buy Stada Arzneimittel AG, Hugel’s European sales partner, last week in a $US5.6 billion deal in partnership with London-based rival Cinven.
South Korea, which has about 51 million people, had 1.2 million cosmetic procedures in 2015, the highest total after Brazil and the United States, International Society of Aesthetic Plastic Surgery figures for 2015 show.
Hugel operating profit will probably rise 32 per cent to 83.5 billion won this year, based on the average of analyst estimates, as sales surge 30 per cent to 161.3 billion won. Profit was 63.3 billion won last year, triple the 2015 total.
Botulinum toxin, marketed under names including Botox, Dysport and Xeomin, was ranked as the world’s most popular cosmetic procedure in 2015, tallying 4.6 million cases, according to the ISAPS.