Prime Highlights
- Bain Capital is buying a 43.66% stake in Echo Marketing, the company behind South Korea’s popular activewear brand Andar, in a $150 million deal.
- The firm plans a tender offer for the remaining shares, potentially giving it full control of the company and boosting investor confidence.
Key Facts
- Echo Marketing shares surged 30% following the announcement, reflecting market optimism about Bain Capital’s involvement.
- The transaction is subject to regulatory approvals and completion of the tender offer process, with Bain Capital yet to reveal detailed future plans.
Background
Bain Capital is buying a 43.66% stake in South Korea’s Echo Marketing, the company behind popular local activewear brand Andar, in a deal valued at 216.6 billion won ($150.14 million).
Echo Marketing said in a regulatory filing on Friday that the U.S.-based private equity firm will purchase the shares from the company’s founder and another major shareholder. The deal marks a major foreign investment in South Korea’s consumer and lifestyle sector.
Alongside the stake purchase, Bain Capital plans to make a tender offer for the remaining roughly 56.4% of Echo Marketing shares. The tender offer will be made at the same price of 16,000 won per share, the company said. If successful, the move could give Bain Capital full control of the company.
Investors reacted strongly to the announcement. Shares of Echo Marketing surged by 30% on Friday, hitting 13,910 won. The sharp rise reflected market confidence in Bain Capital’s involvement and expectations of stronger growth under new ownership.
Echo Marketing has become well-known in recent years because of Andar, a fast-growing activewear brand in South Korea. The brand has built a strong customer base as demand for fitness and casual wear continues to rise in the country.
Market watchers say Bain Capital’s interest highlights the growing appeal of Korean consumer brands to global investors. Private equity firms are increasingly buying companies with strong local brands and growth potential, especially in lifestyle and retail.
The transaction is subject to standard regulatory approvals and completion of the tender offer process. Bain Capital did not disclose further details about its future plans for Echo Marketing.
The deal adds to Bain Capital’s expanding presence in Asia and reflects continued global investor interest in South Korea’s consumer market.
