Hahn & Co. buys SK Group's PET film business for $1.3 billion

Hahn & Co. CEO Hahn Sang-won and the headquarters of SKC located in central Seoul / Courtesy of each company

By Anna J. Park

Hahn & Co., the second-largest private equity firm in Korea, announced Thursday that it has signed a definitive agreement, or a stock purchase agreement (SPA), to acquire a 100-percent stake in SKC's polyester (PET) film business for 1.6 trillion won ($1.3 billion). The acquisition is one of the largest deals in terms of the transaction price so far this year in Asia.

The acquisition is expected to be completed by the end of the year, as SKC plans to hold a special shareholders' meeting in September to earn approval for the necessary split-off to divest the PET film business unit from the company. Hahn & Co.'s purchase includes SKC's film business, SKC Hi-tech & Marketing ― a subsidiary of SKC's film business ― as well as related overseas operations in the U.S. and China.

The PET film unit of SKC, which is the largest in Korea, has long been the company's core business. SKC developed PET film in Korea back in 1977 and grew in size to rank fourth in the world after succeeding in developing color videotapes in 1980, achieving a feat accomplished only by the U.S., Germany and Japan at the time. The film business operation's annual revenue totaled 1.13 trillion last year, while operating profit stood at 68.9 billion won.

With the deal, SKC aims to focus on transforming itself into a global ESG materials solution company, while Hahn & Co. continues its successful track record of revamping Korean companies into global leading companies through private equity acquisitions.

Hahn & Co.'s purchase of SK Group's PET film business is the private equity firm's fourth acquisition deal conducted in Korea since the outbreak of the global pandemic in 2020.

"SK's PET business is a global leader with attractive opportunities for growth and expansion in untapped markets. This acquisition continues Hahn & Co.'s conviction that Korea is an attractive while overlooked market for acquisitions,"?Hahn Sang-Won, CEO of Hahn & Co., said.

Established in 2010 by founder and CEO Hahn Sang-won, Hahn & Co. has grown into one of the largest private equity firms operating in Korea. The firm currently manages the largest private equity capital raised to date for the Korea market. Companies controlled by the company generate revenues of approximately 16 trillion ($12.8 billion) along with assets of 39.6 trillion ($31.6 billion) with over 30,000 employees in various industry sectors, ranging from transportation and industrial products to business services.

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