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The race to acquire Hugel Inc is likely to heat up as the South Korean botox maker attracts interest from Chinese potential buyers as well as domestic conglomerates.

Bain Capital is sounding out interest in its 44% stake in Hugel, industry sources said. The US buyout firm has hired BoA-Merrill Lynch to run a limited auction process.

Several South Korean conglomerates have been mentioned as potential buyers, with Shinsegae and GS reportedly expressing interest in the company. Chinese firms have also approached the seller about an acquisition, according to a source close to the sale process.

Bain completed the acquisition of Hugel in early 2018. A possible sale of its holding was first reported by foreign media last year. The firm has reportedly been looking for potential buyers, with both domestic and overseas companies in mind.

Chinese companies are said to have strong interest in South Korean healthcare companies, especially in the aesthetic and plastic surgery space. Founded in 2001, Hugel is the country’s largest player in the market for botulinum toxin products and hyaluronic acid fillers. Its consolidated revenue exceeded the 200 billion won ($176.2 million) mark in 2019 and increased to 211 billion won in 2020. Hugel aims to grow revenue to 1 trillion won by 2025.

Among Chinese potential buyers known to be keen to acquire Hugel are Sihuan Pharmaceutical and CBC Group.

Sihuan Pharmaceutical is Hugel’s authorized distributor in China. Hugel started to export its botulinum toxin products to the country after receiving approval from China's National Medical Products Administration in October 2020. The Beijing-based company is the third largest pharmaceutical manufacturer in China with a distribution network of more than 10,000 hospitals and medical centers.

CBC Group, founded in 2014 and formerly known as C-Bridge Capital, is a healthcare-focused investment firm with operations in Singapore, Beijing, Shanghai, Hong Kong and New York. CBC became known in South Korea after biosimilar manufacturer Samsung Bioepis announced a licensing agreement with the firm in 2019 to expand into China.

Bain’s stake is expected to be valued at as much as 2 trillion won. Kosdaq-listed Hugel had a market capitalization of around 3.01 trillion won as of Thursday’s closing price. The company’s earnings before interest, taxes, depreciation and amortization were 88.7 billion won last year. (Reporting by Hee-yeon Han)