Hahn & Co. closes $1.2B M&A deal for the acquisition of SKC's industrial film business

Hahn & Company finally completed the merger and acquisition deal to buy SK Group’s industrial film business under its SKC affiliate. The South Korean private equity firm is investing $1.2 billion in the deal.

According to The Korea Herald, this is the largest M&A to close in the country this year, and it was completed amid global economic turmoil. Hahn & Co. said it sees SKC’s industrial film division as having big potential because its products are widely used in semiconductor, mobile, and display productions as technologies advance.

The PEF firm also noted that in 2021, SKC’s industrial film unit alone raked in KRW1.2 trillion in profits and became the largest player in South Korea, and placed fourth on the international stage. In any case, it was in June this year when Hahn & Co. inked an agreement with SK Group for the purchase of a 100% stake in the said business unit of SKC company.

The deal with SK Group is Hahn & Company’s fourth acquisition in the country since the COVID-19 pandemic started two years ago. While there is the possibility of recession due to rising inflation and overall economic instability, the company said it will still continue to seek new growth drivers and boasts it was able to retain its No. 1 position in the market. The PEF firm has already spent some $27 billion on its acquisitions since its establishment.

“This transaction represents an important milestone in what has been highly volatile M&A markets globally and within Korea,” Hahn Sang Won, Hahn & Co.’s chief executive officer, said in a statement. “We are excited to further expand SKC’s industrial film business globally and catapult the business to the next level of technological excellence and competitiveness.”

Meanwhile, The Korea Times reported that based on the company’s broad investment portfolio in the local manufacturing businesses, it is expected to make attempts to raise its acquired SKC industrial film business’ corporate values and competitiveness. From here, Hahn & Co. will keep building up its successful track record of buying and transforming local businesses in the country.