Han & Company Completes Acquisition of SKC Industrial Film Division for 1.6 Trillion KRW

[Asia Economy Reporter Park So-yeon] Hanwha & Company, the largest domestic native private equity fund (PEF) operator, has completed the acquisition of SKC's film and processing business.

Hanwha & Company announced on the 2nd that it has finalized the transaction to acquire 100% of the shares of SKC Mirae Materials, which SKC established by physically separating its film business division.

In June, Hanwha & Company signed a contract to purchase 100% of SKC's film and processing business shares for 1.6 trillion KRW. This is the largest buyout acquisition deal in the domestic PEF market this year.

Despite the sharp rise in market interest rates, Hanwha & Company completed financing for the acquisition at an interest rate in the low 7% range, based on the high trust it has built in the financial investment industry.

SKC's film business, ranked 4th in the world by production volume in the industrial, optical, and packaging industrial film production sectors, is a business division with growth stability that produces film products used in advanced IT devices such as displays, mobile devices, semiconductors, and industrial applications.

It has led the domestic film industry since 1977, the first in Korea. Currently, it focuses on developing advanced materials and producing products for mobile devices such as smartphones with global competitiveness. SKC's film business achieved KRW 1.1319 trillion in sales and KRW 68.9 billion in operating profit last year, continuing growth in both sales and operating profit.

With Hanwha & Company's rich investment experience and proven M&A competitiveness in the domestic manufacturing sector, investment to enhance the corporate value and market competitiveness of SKC's film business is expected to accelerate following the completion of the acquisition.

During the COVID-19 pandemic, Hanwha & Company prepared for the post-COVID era by successfully closing numerous large-scale acquisition deals for excellent companies based on trust and friendly investment relationships with domestic and international investors and stakeholders in responsible business.

In 2020, it acquired Korean Air's in-flight meal business and in-flight duty-free sales division for KRW 990.6 billion, launching Korean Air C&D, and in the same year, it acquired SK Chemical's bioenergy business division for KRW 382.5 billion, operating an eco-friendly energy business under the name SK Eco Prime.

This year, despite the tightening period of interest rate hikes, it attracted industry attention by successfully raising Asia's largest continuation fund of USD 1.5 billion (approximately KRW 2 trillion).

Hanwha & Company made a responsible long-term investment by reinvesting in Ssangyong C&E, which it had previously acquired, through the continuation fund. The fund also achieved a new form of partnership by having global secondary fund operator Coller Capital participate as an institutional investor (LP).

Through this acquisition, Hanwha & Company plans to continuously increase the global market share by enhancing the competitiveness of SKC's industrial film materials business, where demand for film materials in advanced IT devices and the automotive sector is increasing.

A Hanwha & Company official said, "The acquisition of SKC's film business signifies that Hanwha & Company has completed another investment in an excellent company based on trust in responsible business and friendly investment relationships despite difficult times," adding, "We plan to further enhance the global market competitiveness of SKC's film materials business and develop it into a sustainable growth company through active investment in eco-friendly technology advancement and strengthening ESG management."