TKG Aekang, a specialized manufacturer of fire-fighting and heating piping materials (CEO Seo Jeong-hwan), announced on the 23rd that it has acquired 100% of the shares of Udang Technology Industry (hereinafter ‘Udang’), a fire-fighting machinery and equipment manufacturer, from Thetis Holdings. The total acquisition amount is 55 billion KRW, and Udang is expected to be incorporated as a 100% subsidiary of TKG Aekang.
Founded in 1983, Udang specializes in manufacturing fire-fighting machinery and equipment, and achieved the number one market share in the first half of this year in its core products, sprinkler heads and water flow control valves. The company realized an average annual sales growth rate of 8% over three years from 2020, and its sales as of the first half of 2024 were recorded at 27.8 billion KRW. In particular, the operating profit margin in the first half was about 15.4%, securing outstanding profitability compared to competitors in the same industry.
A TKG Aekang representative stated, “Since entering the sprinkler head and water flow control valve business in 2022, TKG Aekang has been strengthening its business capabilities and expanding new businesses. Through the acquisition of Udang, which has a stable business model, we will leap forward as a leading company in the fire-fighting machinery and equipment industry,” adding, “This investment is a strategic decision to solidify our position in the domestic market and secure new growth engines.”
TKG Aekang aims to become an industry-leading company by building a complete fire-fighting system portfolio connecting fire-fighting piping, valves, and heads through the acquisition of Udang. The market expects complementary synergy between Udang’s development and manufacturing technologies for sprinkler heads and water flow control valves and TKG Aekang’s excellent piping products and sales network.
Additionally, the company views the recent strengthening of domestic fire safety regulations as an opportunity and plans to drive continuous growth by promoting products with excellent quality and reliability. Currently, policies mandating the installation of fire-fighting facilities for fire prevention have been implemented in logistics warehouses, lodging facilities, and multi-family housing. Mandatory installation is also being considered for educational facilities, electric vehicles, and ESS fire prevention. As regulatory tightening by authorities generates essential demand for fire-fighting facilities, the company plans to increase sales and profits based on solid technological entry barriers.
Going forward, TKG Aekang plans to establish an efficient operational system by jointly developing product lineups and production strategies with Udang. They will gradually promote integrated purchasing and logistics operations, production automation, and establish an optimal integrated operation system while securing UL certification to actively prepare for overseas expansion beyond the domestic market.
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