Bain Capital Private Equity has acquired a controlling stake in South Korean biopharmaceutical company Hugel for KRW 927.5 billion ($831 million; €736 million).
Under the terms of the agreement Bain Capital and its affiliates will pay KRW 354.7 billion for 985,217 new shares in Hugel and KRW 99.9 billion in convertible bonds. In addition, the firm will acquire all outstanding shares of Tongyang HC, the current controlling shareholder of Hugel, for KRW 472.8 billion.
The transaction for new shares and bonds is expected to close in July, while the purchase of Tongyang's shares is set to be completed within the year, according to a statement from the firm.
Seoul-based Hugel manufactures Botulinum toxin, known as “botox” and hyaluronic acid fillers – dermal fillers to support facial structures and tissues – and exports the products to Thailand, Vietnam, Philippines, Peru, Colombia and Chile. Hugel conducted clinical trials of its products in the US and China last year, it said on its website. The company expects to launch the product in the US and Europe in 2018, and in China in 2019.
The firm’s investment in Hugel will come from its 2015-vintage Asia buyout fund which closed on $3 billion as well as the recently closed $720 million life sciences investment platform, which eyes investments in biopharmaceutical, specialty pharmaceutical, medical devices, diagnostics life science technology companies globally.
PEI understands that Bain Capital’s investment will be used for Hugel’s overseas expansion plans.
This is the firm’s second deal in Korea, following its $350 million acquisition of cosmetics company Carver Korea in July last year.
In April this year, the firm teamed up with Cinven to acquire Frankfurt-listed pharmaceutical company Stada for €3.1 billion.