Classys holder offers 5.24M shares in block trade: terms

Classys holder offers 5.24M shares in block trade: terms

Bain Capital Reduces Stake in South Korean Aesthetic Device Maker Classys via Block Trade

Bain Capital LP has executed a block trade to offload a 6% stake in South Korean medical aesthetics company Classys Inc., selling 3.93 million shares at 57,915 won ($41.35) apiece, totaling 228 billion won ($163 million). The transaction, conducted at a 10.9% discount to Classys' closing price on Thursday, reduces Bain's ownership in the Kosdaq-listed firm from 60.16% to 54.16%.

The partial divestment follows an earlier, unsuccessful attempt to sell a full stake in Classys. In October 2024, Bain engaged JPMorgan and Citigroup as advisors to explore a full exit but faced limited buyer interest due to valuation concerns. This block trade reflects a strategic shift to recover capital amid weak M&A demand in Korea's private equity market. A Seoul-based banker noted that "there has been limited interest at the asking price for a full acquisition," making the block trade a pragmatic exit alternative.

Classys, a leader in high-intensity focused ultrasound (HIFU) devices, dominates over 55% of South Korea's HIFU treatment device market and distributes products to 70 countries. Bain acquired a majority stake in 2022 for 670 billion won ($480 million). The company's Shurink Universe device remains its flagship product.

Market reaction to the news was muted, with Classys' shares down 0.7% to 60,050 won on Monday, outperforming the broader Kosdaq index's 1.6% decline. The block trade highlights broader challenges for global private equity firms in Korea, where valuation gaps and cautious buyer sentiment have slowed deal activity.

Bain's move also underscores lingering caution among investors following controversies involving other private equity-backed Korean firms, such as MBK Partners' handling of Homeplus Co. Despite this, global firms like KKR and Carlyle have shown interest in acquiring stakes in Classys, according to industry sources.

This transaction illustrates the evolving dynamics of Korea's M&A landscape, where partial exits are increasingly favored over full buyouts in uncertain market conditions.

Source: KED Global, May 19, 2025.