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ARCHIMED acquires Jeisys Medical, a leading developer of aesthetic medicine devices
September
11,
2024
ARCHIMED initiates the delisting from Korea Exchange of shares in Jeisys Medical, a leading developer of aesthetic medicine devices, after acquiring Jeisys Medical via change-of-control transactions, including public tenders.
ARCHIMED’s take-private investment will provide critical support to Jeisys Medical’s long-term expansion, reinforcing its position in the international skincare market.
Global private equity healthcare specialist ARCHIMED is set to finalize its ₩990 billion ($742 million; €668 million) take-private acquisition of Jeisys Medical through a simplified cash-for-shares swap, in accordance with the Korean Commercial Code, the Financial Investment Services and Capital Markets Act of Korea, as well as the rules & regulations of Korea Exchange, the securities exchange operator in South Korea.
Founded in Seoul in 2001, Jeisys Medical is a global leader in the field of non-invasive aesthetic medicine devices for skincare (commonly referred to as Energy-Based Devices). EBD rejuvenates skin, resurfaces scarred skin, dissolves fat cells, removes hair and provides body contouring using a range of energies including lasers, pulsed light, radio frequencies, and ultrasound. EBD minimizes the use of needles, limiting discomfort and down-time for patients.
Jeisys Medical was identified through ARCHIMED’s MedDiscover approach. MedDiscover is a set of tools, processes and systems permitting ARCHIMED to identify and approach leading companies operating in ARCHIMED’s prioritized sub-sectors. ARCHIMED identified EBD as a prioritized sub-sector using its analysis tool, MedSeg, which tracks and analyses over 430 sub-segments of the global healthcare industry. ARCHIMED has a long history of acquiring and accelerating the global growth of skincare companies, with current investments in industry leaders such as Prollenium, Cellese, WiQo, Symbio, Proinnovera and NAMSA.
“ARCHIMED’s international expertise in our industry make them the best partner for this company’s future,” says Dong Hwan Kang, CEO and founder of Jeisys Medical. “With ARCHIMED by our side, we’ll be able to pursue aggressive growth in international markets.” Kang is investing the substantial portion of his proceeds from the acquisition for a material stake in the privatized Jeisys Medical.
“What made this deal possible was the strong trust we built with Jeisys management,” says ARCHIMED Singapore-based partner Sainath Ramanathan. “Jeisys and ARCHIMED are local when it comes to Asia and we have an identical view of the company’s global role,” adds Jean-Yves Desmottes, ARCHIMED partner and former CEO of skincare specialists Naos and Bioderma. ARCHIMED’s Asian offices are in Tokyo and Singapore.
Powered mainly by cutting edge products in newer EBD technologies employing High Intensity Focused Ultrasound or Radio Frequencies, Jeisys Medical revenues increased 44 percent annually in the three years through fiscal 2023 to ₩143 billion ($107 million; €97 million). Earnings before interest, tax, depreciation and amortization rose 45 percent over the same period to ₩41 billion ($31 million; €28 million). Jeisys is an EBD market leader in Korea and is the largest EBD supplier in Japan, widely considered the world’s most advanced market for aesthetic medicine.
“This take-private will realize the global potential for Jeisys Medical’s products. The global customer base is only getting bigger for the less invasive, less painful, and renewable rather than permanent, aesthetic medicine that Jeisys Medical devices permit.”
ARCHIMED chairman and managing partner, Denis Ribon
Including Jeisys, MED Platform II is now invested in six platform companies: Irrimax, a market leader in anti-microbial wound irrigation solutions; Instem, a leader in workflow and simulation software for drug development; Natus Neuro, a global leader in neuro-diagnostics; Natus Sensory, a global leader in hearing & imbalance diagnostics; and Plasmid Factory, a German developer of exceptionally high-grade plasmids (an efficient means to modify genes and cells to combat diseases). Formerly London Stock Exchange-listed, Instem, and formerly Nasdaq-listed, Natus, were also privatized through transactions completed by ARCHIMED’s MED Platform II. ARCHIMED funds have acquired a total of four companies through take-privates (all since 2019). All of MED Platform II’s investments represent first-time buyouts for the companies acquired.
Jeisys Medical was acquired by ARCHIMED’s MED Platform II fund, which closed on €3.5 billion in June 2023, a record at the time for a buyout fund exclusively investing in healthcare industries, according to data from Preqin. The MED Platform funds partner with category leaders in the mid-cap global healthcare market, buying majority stakes, usually in association with existing owners and managers.
In terms of returns, ARCHIMED is ranked as the world’s 6th best performing Buyout firm in the latest HEC-DowJones ranking (out of 632 Buyout firms globally). ARCHIMED’s performance is particularly strong with regard to cash-to-cash returns of MED I, MED II and MED Platform I funds (all of them being top decile performers), with a constant flow of liquidity events and distributions since inception, including in the last two years when most players struggled to provide liquidity.