MBK Partners will acquire cosmetics company Skinidea and health functional food company Life&Bio from Morgan Stanley Private Equity (MS PE).
On the 2nd, according to the investment bank (IB) industry, MBK Partners signed a contract with MS PE to purchase controlling equity in Skinidea and Life&Bio. The transaction size is said to be about 300 billion won.
The transaction price for both companies was said to be about eight times earnings before interest, taxes, depreciation and amortization (EBITDA).
MS PE acquired 67% equity in Skinidea, which owns the cosmetics brand Medipeel, in Mar. 2024. At the time, the corporate value based on 100% equity was 150 billion won. It had grown mainly through business-to-business (B2B) channels, but its growth slowed from the second half of 2024 and it entered a correction phase last year.
In response, MS PE sought to shift the growth model to focus on global business-to-consumer (B2C) and proceed with a sale after finishing a reorganization. However, it reportedly moved up the timing of the sale in light of conditions proposed by MBK Partners.
MS PE acquired 81% equity in Life&Bio in Nov. 2021.
With this transaction, MS PE is said to have achieved more than double the principal on Skinidea. For Life&Bio, it reportedly recovered around the principal level. The current management teams at Skinidea and Life&Bio are expected to remain in place after the transaction closes.