Smart Score consortium to acquire golf brand Majesty Golf Transaction valued at $255 mil including net debt
Translated by Ryu Ho-joung 공개 2021-09-23 07:37:35
이 기사는 2021년 09월 23일 07:31 thebell 에 표출된 기사입니다.
A consortium backed by golf service platform company Smart Score is set to acquire Majesty Golf Korea in a deal valued at 300 billion won ($255.3 million) including net debt.The consortium, which also includes Seoul-based private equity firms Striker Capital Management and SG Private Equity, has signed a share purchase agreement to buy a 100% stake in the golf brand from Orchestra Private Equity, industry sources said.
The deal came almost three months after the investor group was named as the preferred buyer in June, and is expected to close before the end of October.
Smart Score will put 10 billion won into the equity tranche of a special purpose vehicle formed to invest in the company. Striker Capital Management will invest 100 billion won in the equity and mezzanine tranches, while SG Private Equity will purchase 60 billion won in redeemable convertible preferred shares issued by the company. The remainder of the acquisition cost will be funded through debt financing.
Majesty Golf has benefited from rapid growth in the golf market, with its revenue and profits increasing significantly in the past year. The company recorded revenue of 95.2 billion won for the 12 months ended June 30, 2021, up nearly 18% from 80.7 billion won for the 12 months ended December 31, 2020. Operating profit jumped more than 50% from 16.4 billion won to 24.8 billion won in the same period.
Strong growth in earnings has helped lower the company’s valuation multiple, with its enterprise value-to-earnings before interest, taxes, depreciation and amortization ratio declining from 13 times at the end of 2020 to 9.3 times at the end of June this year.
The consortium plans to add value to Majesty Golf by expanding its sales channels online and its business to include golf clothing. The domestic golf apparel market is predicted to grow from 5.3 trillion won in 2020 to 6.5 trillion won in 2025.
The golf brand is also expected to seek to expand its presence beyond South Korea, China and Japan to reach consumers in Southeast Asia such as Thailand and Malaysia. The consortium is aiming to take the company public in the next five years.
The sale will give Seoul-based Orchestra Private Equity a return of more than three times invested capital. Majesty Golf was the buyout firm’s first investment after its inception. The firm invested in the golf equipment company in 2018 through its fund dedicated to the deal with the Korean Federation of Community Credit as an anchor investor. (Reporting by Se-hun Jo)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]인니 정부, 친기업 정책 드라이브에 뜨거운 관심 '체감'
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]"유망 스타트업 양성소, 글로벌 투자 거점 부상"
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]"철저히 투자금융 관점서 봐야, 전략적 접근시 유리"
- [2023 더벨 글로벌 투자 로드쇼-베트남]신용보증기금, 중기 베트남 진출 지원에 팔 걷었다
- [2023 더벨 글로벌 투자 로드쇼-베트남]인프라·산업 투자 증가, 부동산 가격 상승 견인
- [2023 더벨 글로벌 투자 로드쇼-베트남]떠오르는 신규 투자처 '온실가스 감축 프로젝트'
- [2023 더벨 글로벌 투자 로드쇼-베트남]VITASK, 베트남 현지 기업 생산·기술력 개선 앞장
- [2023 더벨 글로벌 투자 로드쇼-베트남]급성장 '핀테크' 산업, 전자 결제·P2P·초단기 분야 각광
- [2023 더벨 글로벌 투자 로드쇼-베트남]진출 계획시 세무 접근 필요, '우대세율·감면' 활용해야 '득'
- [2023 더벨 글로벌 투자 로드쇼-베트남]한국이 투자 주춤할 때 태국은 과감히 '베팅'