CBC-led consortium buys South Korean botox maker for $ 1.5 billion


A consortium led by healthcare investment firm CBC Group to acquire a 47% stake in leading South Korean botox maker Hugel Inc from Bain Capital for 1.7 trillion won (US $ 1.5 billion ).

WHO: Founded in 2001, Hugel is the number one leader in botulinum toxin and hyaluronic acid fillers in Korea with over 50% market share, and also develops, manufactures and distributes cosmeceuticals. In October 2020, its injectable botulinum toxin type A officially received marketing approval from the National Medicines Administration of China, making Hugel the fourth manufacturer of botulinum toxin type A products to launch. approved in China and the first of its kind in South Korea. Along with this approval, Hugel expects to obtain marketing authorizations in Europe and the United States over the next 12 months.

WHY: As CBC continues to strengthen its presence in the healthcare sector in Asia, this transaction marks its strategic entry into the medical aesthetics sector, joining a leading portfolio in the pharmaceutical and biotechnology, medical technology sectors. and services.

Founded in 2014, CBC has always focused on control-driven acquisitions and investments in building platforms in leading Asian companies.

IN THEIR OWN WORDS: “By leveraging our presence in international markets, we are confident that Hugel, as a Korea-based company, will become a world leader in aesthetics by expanding significantly in the United States, Europe, China and the rest of the world, ”said Michael Keyoung, Managing Director of CBC and Head of North America and Korea.

Camilla Macapili Languille, Head of Life Sciences at Mubadala, said: “We are very excited to embark on the growth of Hugo in partnership with CBC, GS and IMM. This opportunity cements Mubadala Life Sciences’ entry into Asia alongside our colleagues from Mubadala in China. The investment program team, which already has an established presence in China and a long-standing relationship with CBC. We will work closely with our consortium partners and leverage our network to support Hugo’s vision to become a leading global aesthetic medicine company.

Huh Tae-soo, President of GS Holdings, said, “We are very pleased to partner with CBC, Mubadala and IMM to bring Hugel to the next level of growth by combining our respective expertise with the well-positioned product offering and competitiveness of the company in the global market. This partnership underlines our intention to develop our activity by diversifying our organic portfolio.

Tim Chang, CEO of IMM Investment, said: “We are delighted to partner with CBC, Mubadala and GS to invest in Hugel, further strengthening our global presence. With IMM’s past success in the healthcare industry, we are confident that we can help Hugel grow beyond Korea to become a true global player. “

DETAILS:

  • A consortium led by healthcare investment firm CBC Group and Abu Dhabi sovereign wealth fund Mubadala Investment Co, South Korean firm GS Holdings Corp and private equity firm IMM Investment Corp will acquire a stake of 47 % in the 1.7 trillion won ($ 1.5 billion) South Korean botox maker Hugel Inc of Bain Capital.
  • The deal includes agreed payments for stocks and convertible bonds. Of the total shares to be transferred to the GS-led consortium, 5.36 million shares (or a 42.9% stake) are ordinary shares, while the remaining 801,281 are convertible preferred shares.
  • The management decisions of Hugel after the acquisition will be jointly managed by the companies in the consortium, with GS participating as a member of the board of directors.
  • The market capitalization of Hugel, listed on the South Korean junior board KOSDAQ, was around 2.6 trillion won ($ 2.23 billion) at the time of the announcement.
  • Hugel reported highest profits in history last year with operating profit of 78 billion won ($ 66.8 million) on revenue of 211 billion won ($ 180.8 million) . Company maintains strong performance through 2021, posting operating profit of 26.5 billion won ($ 22.6 million), up 59.1% from same period last year , with sales of 64.5 billion won ($ 55.2 million).
  • Hugel reported operating profit of 56 billion won in the first half of this year compared to 29 billion won the previous year. According to documents filed by the company, its 2020 revenue increased 3% from the previous year to 211 billion won.
  • Morgan Stanley is acting as financial advisor to CBC in connection with the transaction.
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