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MBK Partners Considers Selling Leading Chinese Spa and Beauty Firm

MBK Partners explores sale of Siyanli, valuing the Chinese spa giant at several hundred million dollars, after a four-year investment.

5/16, 10:52 EDT
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Key Takeaway

  • MBK Partners considers selling Siyanli, a leading Chinese spa and beauty firm, potentially valuing it at several hundred million dollars.
  • Siyanli operates 144 spa centers and a hospital across 47 cities, marking a significant presence in China's beauty market.
  • MBK, managing over $30 billion in capital, expanded its stake in Siyanli in 2020 by acquiring an additional 26% for $66 million.

Potential Sale of Siyanli

MBK Partners, a prominent private equity firm in North Asia, is reportedly considering the sale of Shanghai Siyanli Industrial Co., a leading Chinese spa and beauty clinic operator. This move comes as MBK looks to exit its investment in Siyanli, a company it has been involved with since June 2019. According to sources familiar with the matter, MBK is in the process of seeking an adviser to explore its options for the sale. The potential deal for Siyanli could see the company being valued at several hundred million dollars, highlighting its significant presence in the Chinese beauty and wellness market.

Siyanli's Market Presence

Shanghai Siyanli Industrial Co., established in 1996, has grown to operate 144 spa centers, eight medical beauty clinics, and a hospital across 47 Chinese cities. MBK's website notes that Siyanli stands as the fifth-largest high-end spa and medical beauty service provider in China, boasting over 100,000 clients. This extensive network and client base underscore Siyanli's substantial footprint in the country's beauty and wellness sector. MBK's investment in Siyanli has been part of its broader strategy to engage with leading companies in China, Japan, and Korea.

MBK's Investment Background

MBK Partners, founded in 2005, has established itself as one of the largest private equity firms in North Asia, managing over $30 billion in capital. The firm, with offices in Beijing, Hong Kong, Seoul, Shanghai, and Tokyo, focuses on control deals within its geographical scope of China, Japan, and Korea. In 2020, MBK expanded its stake in Siyanli by acquiring a 26% share from Guangdong CHJ Industry Co. for approximately 475 million yuan ($66 million). This acquisition further solidified MBK's investment in the Chinese market, particularly in the high-end spa and medical beauty sector.