Hyundai Green Food to acquire 14.13% of Daewon Kang Up for KRW 38.4bn

SI Industrials Auto parts (springs, seats)
Deal value
$27m
Stake
14.13%
Implied 100%
$187m

Deal value ÷ stake (structure unconfirmed)

Revenue
$595m

2021 연결 · DART-verified

Op. income
-$3m

2021 연결 · DART-verified

Multiples
PSR 0.3x

On implied equity value

DART 20220317000256

Target
Daewon Kang Up · Auto parts (springs, seats)
Buyer
Hyundai Green Food · SI
Seller
Chairman Huh Jae-cheol and 3 related parties
Structure
—
Announced
Nov 27, 2022
Closed
—
Stage
Signed

Target

Daewon Kang Up, founded in 1946, is Korea's largest and reportedly the world's fifth-largest maker of automotive and industrial springs, with subsidiaries in the US and Europe and new ventures such as EV drive-motor cores.

Deal rationale

Hyundai Green Food said the deal diversifies a portfolio concentrated in consumer businesses to spread risk and would provide stable income after its planned holding-company conversion. Aju Business reported that Hyundai Department Store Group Vice Chairman Chung Kyo-sun is Chairman Heo Jae-chul's son-in-law and that the group had bought 7.67% during a 2009 hostile-bid episode, so the market read it as a white-knight move; the group's combined stake rose from 15.61% to 29.74%.

신사업 진출기타
Revenue$595m
Operating income-$3m
EBITDA—
Net income—

2021 연결 · DART-verified · 20220317000256

Press coverage

  • 아주경제 (2022-11-27): “384억원에 취득하기로 결정했다고 공시했다”

This is a data entry summarising filings and press reports. Please check the original sources for the figures.