Hahn launches tender offer for Korean medical devices player

The private equity firm has entered into a definitive agreement to acquire 5.15m shares held by Hae-lyung Hwang for KRW 36,700 apiece. Hwang will receive KRW 188.9bn for his 19.33% stake, according to a filing.

Hahn & Company is also offered to buy all outstanding shares in the company for the same price. Holders of convertible preferred shares will receive KRW 52,428 per share, a second filing stated.

The standard price represents a 15.4% premium to the June 8 close. Lutronic’s stock climbed 13.7% on January 9 to close at KRW 36,150, giving the company a market capitalisation of approximately KRW 965bn. The stock has risen more than 34% since the start of June.

Founded in 1997, Lutronic produces laser devices used in surgery, ophthalmology, and aesthetic medicine. Manufacturing activity takes place in Korea and the company has a network of offices – spanning the US, Germany, France, China, and Japan – to handle international distribution.

Revenue came to KRW 264.2bn last year, up from KRW 173.6bn in 2022. Over the same period, net profit rose from KRW 27.7bn to KRW 45.2bn.

“Hahn & Company is excited to partner with Mr Hwang and his team to propel Lutronic to the next stage of its development. Lutronic is one of Korea’s hidden champions with the potential to become a global leader in its market,” said Scott Hahn, the private equity firm’s CEO.

Hahn is Korea’s largest private equity manager, according to the country's Financial Supervisory Commission, with three funds and a portfolio that generates annual revenues in excess of KRW 19trn. Fund IV is currently in the market with a target of USD 3.25bn.

 

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• Topics
• North Asia
• Buyouts
• Healthcare
• Industrials
• South Korea
• manufacturing
• Hahn & Co