Orchestra buys Korean post-production business
Orchestra Private Equity, a GP that focuses on Korea-Japan cross-border transactions, has invested KRW61 billion ($56 million) for an 87% stake in Seoul Vision, a Korean post-production house for TV commercials.
It is Orchestra’s second PE buyout since converting from an M&A advisory firm to a GP structure last year. The capital comes from Orchestra Private Equity II, a project fund supported by Korean institutional investors.
Established in 1986, Seoul Vision claims to be the domestic market leader and the only player capable of providing full scope post-production services, including editing, 2D compositing, 3D effects, color grading, and audio. It has completed more than 30,000 TV commercial projects as well as producing movie previews, game cinematics, and online ads.
The company has 120 employees in Seoul and Shanghai. Seoul Vision is already the number-five player in China, and further localization and expansion is one of Orchestra’s value-generation initiatives. The others are the recruitment of senior-level executives, bolt-on acquisitions, and entering new business areas such as feature-length movies.
“American, European, and Japanese post-production markets have been experiencing consolidation, whereas the Korean market is still fragmented,” said Sean Lee, Orchestra’s Seoul office manager, said in a statement. “Through talent recruiting and add-on acquisitions, Seoul Vision will be able to rapidly expand market share and consolidate the industry segment it participates in.”
Orchestra was founded by Jay Kim, previously a partner at The Riverside Company and a managing director at PineBridge Investments. It focuses on buying controlling stakes in Korean and Japanese mid-market businesses that have a strong growth story. The aim is to boost each company’s EBITDA by 2-3x through geographic expansion and add-on acquisitions.
The firm currently has KRW135 billion in assets under management. The first deal, which closed last July, involved the acquisition of 32% stake in Japanese golf equipment distributor Maruman & Co. and a 100% interest in its Korean subsidiary. A tender offer for JASDAQ-listed Maruman & Co. is currently in process.
Deloitte served as financial advisor on the Seoul Vision transaction, with KL Partners and T-Plus providing legal and consulting services, respectively.
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