VIG Partners nears $223M buyout of Korean aircraft parts maker Yulgok
What's the deal? South Korean private equity firm VIG PartnersDealroom has a profile for this one. Try Dealroom → is set to close its buyout of aircraft parts maker YulgokDealroom has a profile for this one. Try Dealroom → this month, in a deal worth about US$251.5M (roughly $223 million). VIG expects to secure around 70% of the company, buying shares from a JKL PartnersDealroom has a profile for this one. Try Dealroom → and WJ Private EquityDealroom has a profile for this one. Try Dealroom → consortium and founder Wi Ho-cheol.
Why now? VIG was named preferred bidder in July and signed the stock purchase agreement in August. Final closing talks, including price negotiations and acquisition financing, are underway, though the timetable could slip.
What each side gets: Wi will keep part of his stake and stay in management — a structure that reportedly helped VIG win out over STIC InvestmentsDealroom has a profile for this one. Try Dealroom →, Anchor Equity PartnersDealroom has a profile for this one. Try Dealroom →, and KCGIDealroom has a profile for this one. Try Dealroom →. Sellers JKL and WJ exit after about six years; their 47.09% stake, bought for an estimated US$41.9M to US$50.3M, is now valued near US$159.3M.
What is Yulgok? Founded in 1990, it machines and assembles aircraft fuselage, engine parts, and wing structures. It is a major partner of Korea Aerospace Industries and supplies Boeing and Airbus.
By the numbers: Last year Yulgok posted about US$108M in revenue and US$11.7M in operating profit on a consolidated basis. The transaction values the company, on a 100% basis, in the low-to-mid US$335.4M range.
How it's funded: About half the price — some US$125.8M — comes from acquisition financing led by KB Kookmin BankDealroom has a profile for this one. Try Dealroom →. The rest draws on VIG's fifth blind fund, which closed this year at US$586.9M. Once the deal closes, that fund's deployment rate should reach about 80%.
The signal: The deal marks VIG's push beyond its consumer goods and services roots into manufacturing, including semiconductor equipment and defence. Strong bidder interest in Yulgok reflects a recovering aviation sector and rising appetite for aerospace and defence assets in South Korea.
Read more: biz.chosun.com
Image credit: Generated with Gemini
