Glenwood, NH agree $561m sale of Korea's Tongyang Magic
Glenwood Private Equity and NH Private Equity have agreed to sell Korean consumer appliances manufacturer Tongyang Magic to SK Networks for KRW619 billion ($561 million).
SK confirmed the deal in a regulatory filing. It comes several days after the company was selected as the preferred bidder for Tongyang Magic, having overcome competition from prospective financial and strategic buyers. Unid, a Korean chemicals manufacturer, previously said it might bid for the asset.
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 KRW390.3 billion in sales for the 2016 financial year, up from KRW354.4 billion for the preceding 12 months. Net income rose from KRW1 billion to KRW17.6 billion.
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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