Classys aims for simultaneous 'product and regional' synergy through absorption merger with Iruda

Clasis, a beauty medical device company with a market capitalization of 3.328 trillion KRW, announced plans to aggressively enhance its market share by acquiring Iruda, which has a market capitalization of 147.6 billion KRW, through a surprise merger and acquisition (M&A).

Clasis announced on the 26th that it will merge with Iruda. The merger price was set at 52,774 KRW for Clasis and 7,416 KRW for Iruda, resulting in a merger ratio of 1 to 0.1405237 between Clasis and Iruda, respectively, with Iruda dissolving after the merger. The largest shareholder is currently BCPE, an investment partnership under Bain Capital, holding 61.57% of Clasis shares, which will change to 59.32% but maintain its status as the largest shareholder. The merger is expected to be finalized around October after official procedures.

The merger of the two companies is expected to have a significant impact on the market as it combines the leading players in focused ultrasound (HIFU) and microneedle radiofrequency (RF), which are considered core technologies in the beauty medical device market. Clasis holds the number one market share in the HIFU market in major countries and has recently expanded into the monopolar RF market with its new product, Voluma. Iruda is recognized for its technology in microneedle RF and laser fields, with its flagship Secret series surpassing 5,000 cumulative sales and continuously expanding its new product lineup, including Lipot. Through this, Clasis has secured technological competitiveness covering the entire energy-based device (EBD) spectrum.

Since the strengths of the two companies lie in different areas, the effects of the merger are expected to be maximized. Minsoo Shin, a researcher at Kiwoom Securities, evaluated, "They have achieved product and regional expansion," adding, "They minimized cannibalization while maximizing product and regional portfolio expansion." Shin also noted, "Clasis, which successfully sells HIFU and monopolar RF devices, can now handle a diverse product lineup with minimal damage through the merger with Iruda, which specializes in microneedle RF. Clasis, focusing its business in Brazil and Asia, and Iruda, developing sales strategies in the U.S., India, T?rkiye, and the Middle East, show complementary regional strengths."

This merger is particularly meaningful as it follows Clasis's equity investment in Iruda last September. A company representative stated, "We decided to merge now as the right time to proactively respond to the rapid changes in the beauty medical device market," adding, "Especially, by combining the research and development and quality control capabilities and know-how of both companies, we will focus all our efforts on accelerating the development of next-generation blockbuster platforms and specialized cartridges/tips to further expand the market."

Baek Seunghan, CEO of Clasis, said, "Clasis has a mission to lead the popularization of beauty treatments in the global market through continuous customer-centric innovation, enabling everyone to pursue healthy and natural beauty," adding, "This merger will be a strategic opportunity to rise as the world's top beauty medical platform company." Kim Yonghan, CEO of Iruda, also expressed, "We are very pleased to collaborate with Clasis, which has strong market dominance," and added, "Based on this, we expect to solidify our position in the global market and realize a rapid explosive growth in sales."