ARCHIMED to carry on with Jeisys Medical public tender offer

[Captured from Jeisys Medical‘s YouTube]

French investment firm ARCHIMED Group is pushing forward with a public tender offer worth 724.4 billion won ($524.91 million) for Jeisys Medical Inc., a Kosdaq-listed Korean beauty and medical device company.

ARCHIMED is expected to invest up to 1 trillion won to secure a nearly 100 percent stake in Jeisys Medical by combining the shares acquired during the tender offer with the controlling stake it already holds, and eventually aims to delist the Korean company.

According to sources from the investment banking (IB) industry on Sunday, ARCHIMED Group plans to conduct a public tender offer for 55,724,838 common shares of Jeisys Medical, or a 72 percent stake, via its subsidiary Syracuse Subco Inc.

The proposed tender offer price is 13,000 won per share, which is 20.81 percent higher than the previous trading day‘s share price of 10,760 won. The tender offer will run from June 10th, 2024, to July 22nd, 2024, with NH Investment & Securities Co. handling the process.

ARCHIMED reportedly plans to purchase all shares offered only if the number of shares tendered exceeds the minimum required quantity of 18,013,879 shares (approximately 22.38 percent). If the tender offer succeeds, the French investment firm will own 76,183,756 common shares of Jeisys Medical, or 98.44 percent of the total potential issued shares.

ARCHIMED signed a stock purchase agreement with Jeisys Medical’s founder and largest shareholder Kang Dong-hwan and director Lee Myung-hoon on June 7th, 2024, to purchase all the shares owned by Kang (17,972,844 shares) and part of the shares owned by Lee (2,486,074 shares).

Assuming the acquisition is made at the same price as the tender offer, the transaction amounts to approximately 266 billion won, bringing ARCHIMED’s total potential investment in Jeisys Medical to nearly 1 trillion won.

[Courtesy of Jeisys Medical Inc.]

Jeisys Medical was founded in 2004 and specializes in laser and ultrasound medical devices for dermatology. The company introduced the high-frequency (RF) skin beauty device ’POTENZA‘ and recently launched a new product, ‘DENSITY,’ expanding its business.

For its part, ARCHIMED is a French investment firm specializing in the healthcare sector. It invests primarily in seven areas across North America, Europe, and the Asia-Pacific region: biopharmaceuticals, consumer health, healthcare information technology (IT), in-vitro diagnostics, life science tools and biological services, medical technology, and pharmaceutical services.

the company acquired Natus Medical Inc., a U.S.-based medical screening product company, in 2022 for $1.1 billion.

IB industry insiders cite the high competitiveness and market growth potential of Korean beauty and medical device companies as the reasons for the consistent interest from both domestic and foreign investment firms. Market research firm MarketsandMarkets forecasts that the global medical aesthetics market will grow at an average annual rate of 11 percent from $15.4 billion in 2023 to $25.9 billion in 2028.