Korea's Pavilion to pay $54m for firefighting business

Pavilion will take a 54.5% stake from consulting firm Base HD, according to a filing. The share price of the KOSDAQ-listed company rose 13% following confirmation of the deal to as high as KRW5,550 and was trading at KRW5,030 as of mid-afternoon August 14.

Paratech began manufacturing firefighting equipment such as sprinkler heads in 1973 before the full development of a formal firefighting industry in Korea. The company, then known as Paradise Industry, made a series of acquisitions in the following decades and established an R&D center, broadening its product mix. In addition to sprinklers, the current offering includes fire extinguishers, metal fittings and valves, as related components for water spray, clean agent gas, and air foam systems.

In 2006, the company launched its Fesco brand, which it hopes to grow as a global trademark. Paratech has described its marketing agenda as an attempt to be seen as a “creative company” focused on innovation. Its latest product developments include an automatic fire extinguisher with a gas detection system, a sprinkler with a wider discharge radius and new heat detection technology, and piping fixtures made from specially heat-resistant and pressure-resistant materials.

Pavilion Private Equity focuses on domestic middle market buyouts in manufacturing, consumer products, industrials, financial services, and environment and energy-related sectors. The firm is headed by president and CEO Hyung-Jin Park, who previously served as a managing director at KTB Private Equity and ConneX Partners. Its parent company, Pavilion Investment Group, claims to have about $620 million of alternative assets under management and advisory. 

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• Topics
• North Asia
• Industrials
• Buyouts
• South Korea
• manufacturing
• PIPE