이 기사는 2021년 08월 03일 08:03 thebell 에 표출된 기사입니다.

South Korea’s SeAH Group has offloaded a package of three non-core businesses to a private equity firm as it continues a restructuring to focus on its mainstay steel business.

Affirma Capital agreed to acquire ESAB SeAH Corp, SeAH FS and S&G Holdings from SeAH Group in a deal worth about 130 billion won ($113 million) on Friday, according to industry sources.

The deal is part of the continued efforts by the steel conglomerate to restructure and sell non-core businesses.

SeAH FS and S&G Holdings produce small steel tubes used in automobiles and refrigerators. ESAB SeAH Corp, a joint venture between SeAH and Sweden’s Exelvia Holdings BV, makes welding consumables.

Affirma Capital will own 70% of a special purpose vehicle (SPV) that will be formed to invest in the three firms. The remaining 30% will be owned by SeAH Holdings, the group’s holding company, which will make an equity contribution to the SPV and continue to be involved in the management of the firms.

The SPV will control SeAH FS and S&G Holdings, which will together own a 50% stake in ESAB SeAH Corp. Exelvia Holdings will keep the remaining 50% of ESAB SeAH Corp. Under the agreement, all the three firms will continue to operate under the same brand name after the acquisition.

The firms collectively generated earnings before interest, taxes, depreciation and amortization of about 30 billion won in 2020. About 30 billion won of the acquisition cost will be funded through debt financing, which will be arranged by NH Investment & Securities, with the remainder invested from Affirma Capital’s blind-pool fund.

Affirma Capital’s investment thesis is based on the firms’ strong ability to generate cash and positive growth prospects.

“We think they have strong growth potential as demand for steel tubes, key parts of refrigerators, can increase, especially in Southeast Asia where the cold chain logistics market is growing fast,” said an official at Affirma Capital. “ESAB SeAH Corp, which produces welding electrodes, is expected to benefit from the recovery of the shipbuilding industry.” (Reporting by Hee-yeon Han)