Medical aesthetics specialist CLASSYS said on the 24th that it signed a deal to acquire 77.5% equity in JL Health, a South American distributor group specializing in energy-based device (EBD) aesthetic medical equipment.
CLASSYS plans to acquire JL Health equity through its wholly owned local subsidiary in Brazil. The company said it will fund the acquisition entirely with CLASSYS's cash on hand.
JL Health has Brazilian distributor corporations for aesthetic medical devices, "Medsystems," which has more than 15,000 hospitals and aesthetic spas in Brazil as customers, and affiliated corporations for customer training and financial services. CLASSYS's main products are currently distributed exclusively in the local market.
According to the company, Medsystems posted about 135 billion won in sales last year and 16.9 billion won in adjusted EBITDA.
CLASSYS has entered the South American market with its Ultraformer (domestic name Shurink) series of aesthetic medical devices and the next-generation blockbuster Volnewmer, and ranks No. 1 in market share in the South American high-intensity focused ultrasound (HIFU) market. Brazil's aesthetic medical device market is valued at $800 million, the fourth largest in the world. The company added it plans to launch next-generation products in the South American market.
Chief Executive Baek Seung-han of CLASSYS said, "Medsystems not only has the largest aesthetic medical device customer network in South America, but also insight into the industry and know-how in sales and marketing," adding, "with this deal, we will move beyond being a simple exporting corporations to become a true global corporations that directly designs CLASSYS's brand value and customer experience on the ground."
Meanwhile, CLASSYS began fully adopting a professional management system in 2022. The company previously set a 2030 sales target of $1 billion (about 1.43 trillion won).