South Korean beauty device makers bulk up through M&As

South Korean beauty device manufacturers are aggressively pursuing mergers and acquisitions both at home and abroad to expand their scale, diversify product lines and enhance competitiveness.

They are seeking to leverage the global popularity of K-beauty and lead the beauty market.

Lutronic Corp., South Korea's top-selling beauty device company, with 270.5 billion won ($197 million) in sales last year, announced a merger with global skincare device maker Cynosure in April.

Their merger is poised to create the world's largest aesthetics device company by revenue, boasting a strong presence in the laser and radiofrequency beauty device market with a sales network spanning over 130 countries.

Lutronic is wholly owned by Seoul-based private equity firm Hahn & Co.

Classys Inc., a leader in the market of non-invasive beauty devices such as ultrasonic machines, has also announced a merger with local peer ilooda Co. specializing in lasers and invasive radiofrequency devices.

Their merger is expected to expand their product lines and sales networks. Classys focuses on South American and Asian markets, while Ilooda has built its presence in North America and Europe.

Beauty device companies have enjoyed rapid revenue growth and high profitability in recent years thanks to steady sales of skincare tool consumables such as cartridges.

Armed with high cash flows, these companies are opting for M&As, rather than building their own sales networks and developing products.

Their expanded product lines help them to offer bundled products at a discount, or bundling several cosmetics devices in package, to attract medical professionals who require diverse equipment.

Write to Hyun-Ah Oh at 5hyun@hankyung.com