Another A-share listed company has announced a cross-border acquisition plan. After the market closed on March 10, leading medical aesthetics company Imeik Technology Development Co., Ltd. (“Imeik”) released an announcement stating that its wholly-owned subsidiary, Imeik (HK) Limited (“Imeik Hong Kong”), and Aisheng Shourui (HK) Limited (“Shourui Hong Kong”) have jointly established Imeik International Limited (“Imeik International”).
Imeik International plans to invest $190 million to acquire an 85% stake in REGEN Biotech Inc. (“REGEN”). Upon completion of the transaction, REGEN will become a controlling subsidiary of Imeik.
REGEN is a leading South Korean medical aesthetics company primarily engaged in the research, development, production, and sales of medical materials, medical devices, and pharmaceutical-related products. It was the first company in South Korea and the third globally to obtain regulatory approval for polylactic acid (PLA)-based dermal fillers. Its approved and marketed products include AestheFill and PowerFill.
Reports indicate that as of the valuation benchmark date, REGEN had total assets valued at KRW 25.153 billion ($17.3 million), total liabilities of KRW 4.462 billion ($3.1 million), and net assets of KRW 20.691 billion ($14.2 million). The fair value of shareholders’ equity, assessed using the income approach, was KRW 298.8 billion ($205.7 million), reflecting an appreciation of KRW 278.109 billion ($191.5 million) and an appreciation rate of 1,344.12%.
Notably, DaCe Internaitonal holds the exclusive distribution rights for AestheFill in mainland China and has granted these rights to Datou Medical. In 2021, Jiangsu Wuzhong acquired a 51% stake in Datou Medical. In January 2024, AestheFill received regulatory approval for sale in China, officially entering the Chinese market. According to Jiangsu Wuzhong’s performance forecast released in January, sales of AestheFill generated profits, playing a key role in the company’s turnaround to profitability.
According to Imeik’s announcement, this acquisition marks a significant step in its internationalization strategy. The deal is expected to further solidify Imeik’s leadership in the medical aesthetics injectable market and drive sustained future growth.
Following the transaction, Imeik and REGEN will integrate their R&D, production, and sales resources, maximizing synergies that will help Imeik’s products expand into global markets and increase revenue from international sales. Additionally, REGEN will serve as Imeik’s international business platform, leveraging Imeik’s expertise in R&D, production, supply chain management, and operations to enhance its product portfolio, reduce production costs, and improve management efficiency.
In the long term, Imeik has been preparing to expand into overseas markets since the first half of 2024. In April 2024, company executives stated in an investor relations meeting that they were actively preparing for international expansion. By July 2024, they had confirmed plans to explore overseas market opportunities, conduct in-depth research on different markets, and proceed with product registration abroad at an appropriate time to facilitate global expansion.
Financial reports show that in the first three quarters of 2024, Imeik achieved revenue of RMB 2.376 billion, a year-on-year increase of 9.46%, and a net profit attributable to shareholders of RMB 1.586 billion, up 11.79% year-on-year.
