이 기사는 2020년 05월 18일 08:00 thebell 에 표출된 기사입니다.

South Korea’s private equity firm Keistone Partners will acquire a controlling stake in the country’s aluminum die casting parts manufacturer Se’A Mechanics.

Keistone has formed a consortium with strategic investor HPK to take over a controlling stake in Se’A Mechanics, sources familiar with the matter said on Thursday. The remaining balance is expected to be paid on May 20.

The consortium will purchase an 85 percent stake in the die casting parts producer, including a 44.8 percent stake owned by Se’A Mechanics CEO Kim Chan-han. An equity value of a 100 percent stake is reportedly valued in mid-30 billion won range. Keistone will acquire the company via its second blind-pool fund formed in 2017. The fund is likely to have a small amount of dry powder after the latest investment.

Established in 1999 in Gumi in North Gyeongsang Province, Se’a Mechanics has supplied aluminum die casting parts to major television manufacturers and automakers at home and abroad. The company’s financial performance has seen a remarkable improvement over the past few years, with the company diversifying its business portfolio to secondary batteries used for electric vehicles in 2018.

Se’A Mechanics recorded sales of 86.8 billion won in 2019, up 15.5 percent from a year earlier. Its operating profits stood at 4.7 billion won, up 26.4 percent from a year ago. The company is expected to post sales and operating profits of 90 billion won and five billion won, respectively, this year.

HPK, which joined hands with Keistone, is a supplier of defect repair solutions for LG Electronics. The consortium of Keistone and HPK’s first investment in Se’A Mechanics is expected to create synergies through their technologies and know-hows.

The consortium plans to put efforts into the post-merger integration of Se’A Mechanics. It aims to go public in 2023 at a higher enterprise value by strengthening its sales capacity and enhancing its growth potential of the secondary battery business.

Established in 2007, Keistone, with approximately 1.28 trillion won in assets under management, has focused on structured financing and mezzanine investments. The PE firm completed its investment in LS Alsco and NHN godo last year and currently has Cardoc, SIS, C&S Corporation and ADT Caps in its portfolio.

(By reporter Rho Ar-rum)