Hahn acquires Korea medical devices player

The private equity firm picked up 64.7% of Lutronic's ordinary shares through the tender, taking its overall holding to 83.9%. It also acquired KRW3.2bn worth of convertible preferred shares, or 51.3% of the total outstanding convertible preferred shares, according to a filing.

The offer, which values the company at KRW 957bn, was launched last month in conjunction with the company’s founder and CEO Hae-Iyung Hwang. He will receive KRW 188.9bn for his 19.3% stake. The offer price represents a 15.4% premium to the June 8 close.

Shares in Lutronic have moved marginally higher since confirmation of the transaction and were trading at KRW 36,550 mid-session on July 19, giving the company a market capitalisation of KRW 997.3bn. The stock has risen more than 34% since the start of June, shortly before Hahn & Co launched its offer.

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. About 40% of revenue comes from the US, compared to 35% from Europe and the Middle East.

“Partnering with Hahn & Co. paves the way for Lutronic’s brighter future,” Hwang said in a statement. “I am confident that this partnership will accelerate Lutronic’s ascension as the leading and dominant player in the aesthetics space.”

Lutronic represents Hahn & Co's 34th investment in Korea. The private equity firm recently reached a first close of USD 1.9bn on its fourth Korea fund. The overall target is USD 3.25bn.

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