Korea’s GS Group to Acquire Botox Powerhouse Hugel for $1.7B

Korea’s GS Group is in the reckoning to acquire the botox tycoon Hugel for a whopping price of 2 trillion won ($1.7 billion). The bid is higher than other competitors, including Korea’s Shinsegae Group.

Gaining Rights on 44% of Shares

To obtain Hugel’s management rights, GS Group needs to claim 44% of the shares. GS Group has formed an alliance with Mubadala, CBC Group, and IMM Investment and is currently negotiating with the US company Bain Capital that owns 42.9% of Hugel’s share. It is reported that the GS Group-led alliance is scheduled to sign a share purchase agreement (SPA) with Bain next week.

First Korean Made Botox to Gain Approval in China

Hugel is one of the biggest botox makers in Korea, taking up 50% of the market. Its botox won the regulatory nod from China’s NMPA, making it the first Korean botox to enter the Chinese market among the four such products approved in China.

Sold under the name of Letybo, Hugel has shipped the first batch to China in December 2020 and has already reached some of the major cities. Botox is also sold in 27 countries, including Japan, Vietnam, and Taiwan.

GS Group to Expand Business Portfolio

The potential acquisition might be a move for GS Group to expand its businesses outside of oil refinement, energy, and retail and venture into the biopharmaceutical sector. Though GS Group has an advantage on the number, Hugel’s acquisition is still not a done deal.

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Author

Tyler Chen

"Never go to a doctor whose office plants have died."- Erma Bombeck