Blackstone in Talks to Buy Juno Hair in South Korea for $590 Million

American private equity firm Blackstone is in talks to buy Juno Hair, South Korea's largest high-end hair salon chain, in a deal reportedly worth 800 billion won ($590 million).

The potential acquisition would cover the entire business of Juno Hair Group, covering more than 180 directly-operated salons and more than 3,000 employees. The company had revenue of 300 billion won and earnings before interest, tax, depreciation and amortization (EBITDA) of 37 billion won last year. The proposed valuation is more than 20 times EBITDA, unusually high in the Korean salon industry. The deal would involve Blackstone acquiring the shares held by founder and CEO Kang Yun-seon and his associates. It has not yet been determined whether Kang will retain a minority stake or any operating position after the transaction is completed. The process is being managed by Samjong KPMG.

The deal would be one of the largest acquisitions in South Korea's fragmented personal care services industry. Juno Hair's centralized training model and controlled operations enable it to provide consistent service across stores, a common challenge in the salon franchise industry. The group has begun limited overseas expansion, including stores in the Philippines and Singapore, and its branch in Myeongdong, Seoul, has attracted a large number of foreign tourists. Blackstone Group is reportedly bullish on the brand's potential for international expansion.