US-based global private equity firm Blackstone Inc. has acquired Juno Hair, South Korea’s largest premium hair salon chain, in a deal that values Juno Hair Group at 800 billion won ($590 million).
Blackstone, the world’s largest alternative asset manager with $1.2 trillion under its control, has signed a definitive agreement to make a “significant investment” in Juno Hair, the New York-based PEF said in a statement on Tuesday.
While neither side disclosed financial terms, industry sources said the transaction values the business at up to 800 billion won, a lofty price tag for a hairdressing chain.
Blackstone was the most aggressive among several global buyout groups that have explored a potential takeover of the Korean beauty group.
Investment banking sources said that Blackstone expressed its intention to buy the entire stake in Juno Hair held by founder and Chief Executive Kang Yun-seon and related parties.
Blackstone is a US private equity firm Kang will remain in her role as Juno’s CEO and partner with Blackstone to drive the company’s continued growth and global expansion, the US firm said in the statement.
KPMG Samjong Accounting Corp., also known as Samjong KPMG, is managing the transaction.
FIRST GLOBAL BUYOUT FIRM TO CONTROL KOREAN HAIR SALON OPERATOR
The acquisition marks the first time a global buyout group has taken control of a Korean hair salon operator, diverging from the more common targets in cosmetics and beauty devices.
Blackstone, a US-based global private equity firm, handles $1.2 trillion in assets under management (Screenshot captured from its website) Blackstone executives said they were betting on Juno’s expansion potential abroad as Korean beauty and wellness brands are enjoying unprecedented popularity.
Founded in 1982 near Sungshin Women’s University in Seoul, Juno Hair has grown into a dominant force in the country’s personal care market with more than 180 salons and over 3,000 employees.
Its portfolio includes bridal beauty flagship Avenue Juno in the upscale Cheongdam district, the in-house training institute Juno Academy and the proprietary haircare line Tria Milia.
CEO Kang has been vocal about turning Juno into “Korea’s Vidal Sassoon.”
Known for taking her entire staff to the UK for training in 1993, she is said to have emphasized education and professional standards to meet customer requests.
The internal discipline has been central to the brand’s premium positioning – and a key attraction for Blackstone, sources said.
Juno Hair is South Korea’s largest premium hair salon chain K-BEAUTY’S OVERSEAS EXPANSION
For Blackstone, the deal will be a continuation of its strategy to back Korean mid-sized companies with strong cross-border growth potential.
The firm took a similar approach when it acquired JJTools, a precision cutting toolmaker, betting on its overseas expansion.
Juno already operates salons in the Philippines and Singapore, but Blackstone’s capital and global network could accelerate Juno’s growth into Southeast Asia, the Middle East and North America.
Juno’s Philippines outlet, which opened last year, is staffed by 20 stylists, generating 2 billion won in sales with 1 billion won in operating profit, sources said.
Juno Hair is South Korea’s largest premium hair salon chain Further, Juno’s flagship Myeongdong branch in central Seoul draws mostly foreign tourists, fueling Kang’s belief that Korean salon culture can be exported globally.
“We are very excited to partner with Blackstone, which shares our vision of delivering exceptional Korean beauty and wellness services to a global audience. Blackstone brings unique scale and a global platform, which will help drive our expansion and solidify our leadership in K-beauty,” Kang said.
RARE PREMIUM FOR K-BEAUTY FIRM
The Juno Hair Group – comprising five entities, including Juno Beauty and Juno Depot – reported about 300 billion won in sales revenue last year with 37 billion won in earnings before interest, taxes, depreciation and amortization (EBITDA).
Juno Hair is South Korea’s largest premium hair salon chain Blackstone’s acquisition valuation represents Juno’s enterprise multiple exceeding 20 times EBITDA, a premium level rarely seen in Korea’s salon franchise industry, sources said.
“This partnership reinforces Blackstone’s commitment to partnering with visionary entrepreneurs. Juno represents Blackstone’s fourth private equity investment in Korea, where we have invested behind industry-leading companies together with visionary entrepreneurs, and are committed to working towards their long-term success,” said Eugene Cook, head of Korea for Blackstone Private Equity.
Write to In-Soo Nam at isnam@hankyung.com Jennifer Nicholson-Breen edited this article.
