Bain Capital sells Hugel stake to consortium

Bain Capital has sold its 42.9%-plus convertible bonds in Kosdaq-listed botulinum toxin maker Hugel, reported the Korea JoongAng Daily and other media.

The buyer is a consortium owned by CBC Group, a Singapore private equity company, Abu Dhabi-based Mubadala Investment, and an unnamed special purpose company, which is owned equally by GS Holdings and Seoul’s IMM Investment.

The special purpose company is acquiring 27.3% of the consortium. The other shareholdings were not disclosed. The value of the transaction was reported to be 1.72 trillion won ($1.46 billion), the largest acquisition in South Korea's bio industry.

GS Holdings will receive a seat on the board.

It said in a statement that it sees the acquisition as a chance to expand its business portfolio in the bio industry, especially in the domestic and global botulinum toxin and hyaluronic acid filler markets.

Bio has been one of the company's focuses in recent years. GS Holdings selected the Hugel deal as its very first attempt to enter the bio industry as Hugel has “qualified products, is competitive and has great growth potential globally.”

“It is anticipated that Hugel will grow further in the future with its many qualified products and global competitiveness,” said GS Group chairman Huh Tae-soo, adding: “GS will foster Hugel as a platform that will help expanding the company’s bio business.”

Hugel reported record earnings last year, with its operating profit increasing 15% to Won78.2 billion ($670 million) on sales of 211 billion won. Botox and facial fillers accounted for more than 90% of the company’s sales, with the group enjoying a beefy 37% operating profit margin.