LF Investment leads push into Japan’s rehabilitation market with Remed, expands cooperation with Artra [fn Market Watch]

[Financial News] LF Investment is accelerating its cooperation with Artra (ARTRA), a publicly listed healthcare company in Japan. It is investing 15 billion won in Remed, a KOSDAQ-listed medical device company, and is facilitating an investment by Artra in Remed’s Japanese subsidiary to support local business expansion.
According to investment banking (IB) industry sources and the Financial Supervisory Service’s electronic disclosure system on the 16th, LF Investment, an investment firm affiliated with LF Group, will invest a total of 15 billion won in Remed alongside Pointer Private Equity (PE). The investment will involve purchasing 5 billion won worth of existing shares from the largest shareholder and acquiring 10 billion won worth of newly issued convertible bonds (CBs) from Remed.
Remed disclosed on the 14th that it would issue its fourth privately placed CB. The coupon rate is 1.0%, and the guaranteed yield at maturity is 5.0% per year. Payment is due on the 26th, and the maturity date is October 26, 2031. The 10 billion won raised through the CB will be used to enter the U.S. market, expand its business in Japan, and find new distributors in Europe. The 5 billion won from the sale of existing shares will be used by the largest shareholder to repay an existing loan secured by shares.
Japan is at the heart of this investment. Remed operates there through its local subsidiary, Remed Japan. It has signed a memorandum of understanding (MOU) with Tokyo Stock Exchange-listed Artra and is pursuing medium- to long-term cooperation. Artra provides management support services for osteopathic and acupuncture clinics (A-COMS) and has a network of more than 3,000 treatment clinics in Japan. The partnership between the two companies took shape with LF Investment acting as an intermediary. Artra is currently investing in Remed Japan. If the investment is completed, the relationship between the two companies will expand from distribution cooperation to a capital partnership.
Japan is considered the world’s fastest-aging country. According to Japan’s Ministry of Internal Affairs and Communications, the population aged 65 and over totaled 36.19 million last year, accounting for 29.4% of the total population. Remed’s peripheral nerve and muscle stimulation (PMS) and extracorporeal shock wave (ESWT) technologies can be put to immediate use in musculoskeletal pain management and rehabilitation, areas commonly addressed by osteopathic clinics. Remed has received certifications from the U.S. Food and Drug Administration (FDA) and under the European Medical Device Regulation (MDR), and has experience exporting its products to about 80 countries. Obesity drugs are also seen as a new opportunity. As use of GLP-1-class obesity drugs increases, sarcopenia—the loss of muscle mass alongside weight loss—is drawing attention. Remed plans to expand its sales channels to U.S. med spas and other outlets, led by its magnetic muscle stimulation devices.
Remed’s performance is also improving. In the first half of this year, its consolidated revenue was about 14.5 billion won and its operating profit about 1.6 billion won. It has already achieved roughly half of this year’s revenue target of 28 billion won. Its debt-to-equity ratio on a standalone basis is 28%, leaving its financial structure on a stable footing.
LF Investment has built a portfolio in aging and neurotech by investing in senior care company Caring and electroceutical company Ybrain, among others. This year, it has also increased its investments in beauty and healthcare while growing its assets under management (AUM).
An LF Investment official said, “Remed is a company with both the capability to secure overseas regulatory approvals and experience commercializing its business abroad,” adding, “The structure stabilizes its governance through the acquisition of existing shares and provides growth capital through the CB.” The official continued, “We are taking a medium- to long-term view of the business model to be developed with Artra in Japan, where population aging began earlier, as well as the potential to expand into home care and neurotech.”

[email protected] Kang Gu-gwi Reporter