Recently, Cynosure, an optoelectronic medical aesthetics company, and Hahn & Company, which just recently acquired Lutronic, announced that they have entered into a definitive merger agreement for the strategic merger of Cynosure and Lutronic. Both Cynosure and Lutronic are reportedly global leaders in energy-based medical aesthetic treatment systems and related technologies. The transaction is expected to close in the first quarter of 2024 under customary closing conditions, the terms of which were not disclosed.
Hahn & Company, on the other hand, was founded in 2010 and is the largest private equity firm in South Korea, with more than $14.6 billion in assets under management.Hahn &Company-controlled companies have annual revenues of more than KRW 20 trillion ($15 billion), assets of KRW 34 trillion ($27 billion), and more than 30,000 employees globally.June 2023 Hahn&Co acquired Lutronic for a consideration of approximately $735.9 million, marking Hahn&Co's 34th investment in a Korean company.
Following the merger of Cynosure and Lutronic, the new company will be a global leader in medical aesthetics with a diversified and innovative product portfolio and a presence in more than 130 countries. It offers users a broader suite of products and consumables, in-depth and relevant clinical training and services, expanded R&D capabilities, an expanded geographic footprint to serve more customers worldwide, and a strengthened supply chain to ensure seamless continuity of products and services.
Cynosure
Founded in 1991, Cynosure was successfully listed on NASDAQ in 2005 and became the world's No. 1 laser company in 2007, with the largest stock market capitalization among global laser companies.In 2012, the company launched the world's first picosecond laser, opening a new era of picosecond treatments in the global medical aesthetics community.In 2016, it launched the first FDA-approved for non-invasive body contouring laser therapy, SculpSure
Currently, the Cynosure product portfolio spans Q-tuning, picoseconds, intense pulsed light, and radiofrequency to provide hair removal, treatment of vascular and benign pigmented lesions, removal of multicolored tattoos, skin revitalization, fat reduction through laser lipolysis, and cellulite reduction. The Company's brands include Cynosure, Palomar, ConBio, and Ellman, and it has direct sales teams in the United States, Canada, the United Kingdom, China, Japan, and South Korea, as well as international distributors in approximately 130 other countries.
Lutronic
Lutronic Lutronic, on the other hand, founded in 1997 and listed on KSDAQ in 2006, is a global leader in the development of smart laser and energy systems. In 2017, Lutronic moved its headquarters to Boston, USA, positioning Lutronic as a global company, while spending more than 20% of its annual revenues on research and design, with 500+ global patents and 300+ published clinical papers.
The company now has a broad, market-leading portfolio of products in the areas of skin resurfacing and rejuvenation, hair removal, vascular lesion treatment, skin tone and body contouring utilizing laser, radiofrequency and electro-muscular stimulation technologies. The product matrix encompasses products such as the eCO2 Plus™ Ultra Pulsed CO2 Fractional Laser, SOLARI™ Multifunctional Photonics Platform, Spectra™ Spectrum Dual Pulse Wide Q-Switched Nd:YAG Laser, Healite IIC LED Spectral Therapeutic Apparatus, and INFINI Highly Accurate RF Fractional.
Currently, Lutronic provides product service and technical support through wholly owned subsidiaries and distributors in more than 60 countries around the world. 2022 revenues exceed KRW 264 billion (approx. USD 200 million), with 40% of revenues from the U.S. and 35% from Europe and the Middle East, providing a strong global sales base.
Hahn & Company's acquisition of Lutronic last year
The merger transaction will be led by Hahn & Company, the largest private equity firm in South Korea with more than $14.6 billion in assets under management, controlling companies with annual revenues of more than $15 billion, assets of $27 billion, and more than 30,000 employees globally.In June 2023, Hahn & Co acquired Lutronic for approximately $735.9 million in consideration. Lutronic, marking Hahn&Co's 34th investment in a Korean company.
According to reports, the merger of Cynosure and Lutronic Lutronic will result in a new company that will be a global leader in medical aesthetics systems with a diversified, innovative product portfolio and a presence in more than 130 countries. It will be able to offer customers and patients a broader suite of products and consumables, in-depth and relevant clinical training and services, expanded research and development capabilities, an expanded geographic footprint to serve more customers globally, and a strengthened supply chain to ensure seamless continuity of products and services.
The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, the terms of which were not disclosed. According to an industry analyst, combining two powerful global companies will not only further drive innovation in their medical device technologies in the medical aesthetic space and provide superior products and customer service to global aesthetic providers. It will also be able to further expand its product line and global customer base in terms of industry infrastructure and best-in-class brand building capabilities, and is expected to create the world's largest optoelectronic medical aesthetic company.
