VIG Partners buys Korean PVC window maker

Founded in 1994, Winche claims to be the only PVC window manufacturer in Korea with full in-house capabilities from production to fitting. This enables it to compete with the chaebol affiliates also active in the space. VIG plans to appoint a new CFO and CSO, but most of Winche's senior management will remain in place.

VIG is paying approximately 6.5x forward EBITDA for the business, with Winche's revenue EBITDA expected to reach KRW105 billion and KRW20 billion, respectively, in 2015.

"Although Winche's current business is primarily focused on the B2B housing segment, we see huge potential in the B2C market since the domestic home improvement and remodeling market is expected to continue its rapid growth and we are confident that Winche is well-positioned to capture that growth," Song-wook An, a partner at VIG, said in a statement.

VIG closed its second Korea-focused fund at $350 million in 2014. The firm targets mid-market buyouts across financial services, consumer goods, online and mobile commerce, and household appliances. Recent investments include Bodyfriend, the country's leading massage chair manufacturer. The GP also owns the Burger King master franchise for Korea.

Earlier this year, VIG agreed to sell its majority stake in Tong Yang Life Insurance to China's Anbang Insurance Group in a KRW1.13 trillion deal. The firm originally acquired a 17% stake in Tong Yang in 2006 through Vogo Fund I. It then took a controlling interest in 2010 through Vogo Fund II, a project-specific fund dedicated to the acquisition.

The name change from Vogo to VIG Partners will come into effect on January 1.

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• Topics
• Buyouts
• North Asia
• Industrials
• South Korea
• Vogo Investment
• manufacturing
• buyout