Archimed, a France-based healthcare-focused private equity firm, is set to acquire South Korean aesthetic medical device company Jeisys Medical. Once the deal is finalized, all three major South Korean aesthetic medical device companies, including Classys and Lutronic, will have private equity firms as their primary shareholders. This move comes amid a growing trend of increased exports of home-use beauty devices. The K-beauty wave, which started with cosmetics, is now spreading to the medical device industry.
Archimed on June 10 announced its plan to acquire management control of Jeisys Medical. The firm has already acquired a 26.4% stake from Jeisys Medical’s major shareholders, including Chairman Kang Dong-hwan and Director Lee Myung-hoon, and plans to conduct a public tender offer for the remaining shares until July 22. Archimed aims to secure at least a 50% stake through the major shareholders’ shares and the public tender offer.
Jeisys Medical specializes in aesthetic medical devices, including skin lifting equipment utilizing radiofrequency (RF) and high-intensity focused ultrasound. Classys and Lutronic, other leading aesthetic device companies, were acquired by Bain Capital, a U.S.-based private equity firm, in 2022 and by South Korean private equity firm Hahn & Company in 2023, respectively. Bain Capital further expanded its presence by acquiring shares in Classys’ competitor, irooda. Domestic bio-pharmaceutical company HLB Group is also reportedly looking to acquire an aesthetic medical device company.
These companies’ products typically use lasers or RF to stimulate the dermal layer beneath the skin without causing significant surface damage, effectively reducing fine lines and improving skin elasticity. Despite similarities in principle, the companies produce various products tailored to different shapes and uses.
The primary reason for the attention on aesthetic medical device companies is their potential for overseas sales growth. According to the Korea Customs Service in April, the export value of domestic home-use beauty devices reached record highs annually since 2020. Last year’s export value was $115 million (about 160 billion won), up around 30% from the previous year. An industry insider said, “While the absolute export value isn’t very high, the significant growth potential drives investments.”
In the past, German and American companies like Merz’s Ultherapy and Solta Medical’s Thermage dominated this sector, but now South Korean products are rapidly catching up. “Domestic companies, as latecomers, focused on developing customer-friendly technologies such as reducing pain during procedures,” the industry insider said. “With the overall technological improvement, they have also launched home-use devices and employed celebrity endorsements, enhancing their marketing efforts.”
Another reason for the industry’s growth is the relatively lighter regulatory environment compared to other pharmaceutical and biotech fields, as well as the inclusion of consumables in the products, which facilitates steady sales. Beauty medical devices that come into direct contact with the face require frequent cartridge replacements, ensuring ongoing revenue from consumable sales. The profit margins for skin beauty cartridges reportedly reach up to 70%.
The recent increase in exports of South Korean aesthetic medical devices is attributed to advanced markets like the U.S. and Japan and to expanding markets in emerging regions such as Southeast Asia. Domestic companies are manufacturing improved performance devices at lower prices, timed with the expiration of original equipment patents.
