THE WHAT? Ilooda, a South Korean medical aesthetic device maker, is expected to sell its management rights to US private equity company Bain Capital LP. Reportedly, negotiations for the deal are at an advanced stage, with Bain considering a tender offer to gain a controlling stake and potentially delist Ilooda from the junior Kosdaq bourse.
THE DETAILS? The acquisition is seen as a strategic move by Bain Capital to broaden the scope of Classys Inc., another medical aesthetic device manufacturer it purchased last year. This move falls within Bain’s long-term strategy to enhance its position in the global anti-ageing products market. It’s worth noting that Bain has a history of significant investments in the Korean cosmetic industry.
THE WHY? Bain’s interest in Ilooda lies in the firm’s promising performance and potential for growth. Established in 2006, Ilooda has seen substantial growth in revenue and operating profit by developing innovative laser and radiofrequency devices for anti-ageing. The acquisition would provide an opportunity for further expansion and enhanced valuation based on Ilooda’s positive market trajectory and Bain’s past success with similar investments.