Bain Capital, a global private equity fund (PEF) manager, will acquire ECHOMARKETING, a KOSDAQ-listed company. Bain Capital plans to secure management control and then buy all remaining shares to voluntarily delist ECHOMARKETING.
According to the Financial Supervisory Service's electronic disclosure system on the 2nd, Bain Capital signed a contract to acquire 43.66% (13,534,558 shares) equity held by Chief Executive Kim Cheol-ung, the largest shareholder of ECHOMARKETING, and a related party (AI Marketing Group). The purchase price is about 216.6 billion won, or 16,000 won per share. AI Marketing Group is a private company wholly owned by Kim.
At the same time, Bain Capital will carry out a tender offer for the remaining 56.4% (17,497,530 shares) equity held by general shareholders at the same price of 16,000 won per share. The tender offer price includes a management control premium of about 49.5% compared with the previous trading day's closing price (10,700 won). The total funds Bain Capital will commit to the management control acquisition and the tender offer are about 500 billion won.
The tender offer period runs for 20 days from the 2nd to the 21st of this month. NH Investment & Securities is the lead manager. Bain Capital said it will purchase all shares tendered regardless of the tender rate. Bain Capital said it plans to proceed with a voluntary delisting as quickly as possible in accordance with procedures permitted by relevant laws and regulations.
ECHOMARKETING began as an online advertising agency and rapidly grew with a "business boosting" model that discovers and nurtures promising corporations. In 2017, it acquired Daily&Co and went on to score successive hits with the low-frequency massager "Cluck" and the premium mattress "Mongze."
Andar, the athleisure brand acquired in 2021, logged cumulative sales of 213.2 billion won in the third quarter last year. On a consolidation basis, ECHOMARKETING posted cumulative revenue of 321 billion won and operating profit of 37.3 billion won in the third quarter last year.