이 기사는 2021년 07월 21일 07시56분 thebell에 표출된 기사입니다

Prime Living & Health, the South Korean company behind dietary supplement for men Vmax, has been put up for sale.

Prime Living & Health has hired Samil PwC to manage the process to sell a 100% stake owned by president Choi Young-sik, industry sources said on Monday. The seller is carrying out marketing campaign by distributing teaser letters to potential buyers, including private equity firms.

Founded in 2011, Prime Living & Health is a male dietary supplements distribution company. The company recorded revenue of 30 billion won ($26 million) with a single product in just two years, thanks to Vmax’s popularity.

The company’s revenue jumped 386% to 47.2 billion won and its operating profit increased 626% to 14.4 billion won last year, backed by its diversified product lineup and the Covid-19 pandemic.

Prime Living & Health boosted its operating profit margin by running its own marketing center. The company has generated 90% of its sales through its marketing center instead of using homeshopping and open market channels which require high commission fees. But its reliance on Vmax is considered a weakness, with the company generating 90% of total sales from Vmax.

Prime Living & Health signed memorandum of understanding with DanDi Bioscience in March to develop and distribute health functional food that enhances immunity and body functions. It plans to launch new dietary supplements for men.

The seller is emphasizing the company’s growth potential to be the top-tier firm in the men’s dietary supplements market. The size of the domestic health functional food market was 4.9 trillion won in 2020, a 6.6% increase from the previous year, according to data from the Korea Health Supplements Association. The men’s health supplement market is estimated at around 1 trillion won.

Several private equity firms are currently showing interest in the company, with a strategic investor which intends to expand its business into the health supplement sector may consider a possible acquisition. (Reporting by Se-hun Jo)