SK Networks named preferred bidder for PE-owned Tongyang Magic

SK disclosed the development in a regulatory filing, offering no other comment. According to local media reports, it offered around KRW600 billion ($548 million). Unid, a Korean chemicals manufacturer, previously said it might bid for the asset, and there was said to be interest from private equity investors as well.

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, dishwashers, 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. Operating profit increased from KRW23 billion to KRW38 billion over the same period.

SK Networks, a subsidiary of SK Group, has operations that span energy, commodities trading, consumer electronics, automotive services, fashion and hotels. It generated sales of KRW20.3 trillion in 2015, down from KRW22.4 trillion the previous year, while net profit increased to KRW73 billion from KRW31.6 billion.

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• Topics
• North Asia
• Consumer
• Trade sale
• South Korea
• Exit
• manufacturing