Korean strategics confirm interest in PE-owned Tongyang Magic
SK Networks and Unid have both expressed an interest in Tongyang Magic, a South Korean consumer appliances manufacturer put up for sale by Glenwood Private Equity and NH Private Equity.
SK Networks, an energy-focused subsidiary of SK Group, and chemicals manufacturer Unid both confirmed in filings that they were considering bids for the asset. An assortment of prospective buyers - ranging from Taiwan's Hon Hai Precision Industry to various private equity firms - have been identified by local media. The deal is said to be worth KRW500 billion ($448 million).
Tongyang Magic was set up in 1985 as the industrial machinery unit of Tongyang Cement. It started producing gas ovens in 1986 and is now the domestic market leader for home appliances including gas stoves, dish washers, water purifiers and bidets. The company offers rental services in addition to standard product retail.
Glenwood and NH bought the asset from Tongyang Group for KRW279.9 billion in 2014. Tongyang Magic posted KRW393 billion in sales last year, up from KRW322 billion in 2013, according to Yonhap News Agency. Operating profit increased from KRW23 billion to KRW38 billion over the same period.
Glenwood is led by Sang-Ho Lee, son of Hak-Soo Lee, formerly vice chairman at Samsung Group. Earlier this year it partnered with Baring Private Equity Asia to buy LafargeHolcim's Korea-based cement business in a deal worth approximately KRW560 million.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.