SKS-Daishin PE seeking to buy Ohjin Corporation The two Korean PE firms to use their jointly-managed secondary fund to buy the target
Translated by Ryu Ho-joung 공개 2020-04-21 08:00:42
이 기사는 2020년 04월 21일 08:00 thebell 에 표출된 기사입니다.
A consortium of SKS Private Equity and Daishin Private Equity is seeking to buy Ohjin Corporation. The South Korean private equity consortium is said to have completed due diligence on the restaurant kitchen equipment supplier, while whether this will lead to an actual acquisition is still unclear.LB Private Equity, the PE unit of NH Investment & Securities (NH PE) and H&CK Partners, which together own 100 percent of Ohjin Corporation, have contacted potential buyers since last year, looking for exit opportunities in about four years since their first investment in the company, sources close to the matter said on April 16.
Several investors reportedly expressed interest in the company. Among them, strategic investors seemingly pulled out of talks with its private equity owners as they couldn't agree on the company's valuation. And recently, one of the financial investors, a consortium of SKS PE and Daishin PE, reportedly completed due diligence on the company. The two PE firms jointly manage a 200 billion won secondary fund, Daishin-SKS Secondary PEF, that was closed in July 2016.
However, the talks have been put on hold for the time being as private equity investors are increasingly being cautious about new investments with the coronavirus pandemic taking a toll on the financial markets, the sources said. It is unclear when the talks could restart.
Existing private equity owners are likely to focus on selling the company at a right price, rather than pushing to speed up a sale, because they already have an almost complete payback of their invested capital. Ohjin Corporation annually paid a large amount of dividend to its private equity owners, including a 2.8 billion won cash dividend last year.
Ohjin Corporation is growing at a relatively moderate pace, but is attractive in that it generates stable cash flows. It is also in a strong financial position, maintaining zero borrowings on its balance sheet since its foundation. In 2019, the company recorded revenue of 21.9 billion won and operating income of 4.2 billion won, respectively, similar to those recorded in the previous year.
Ohjin Corporation signed an agreement in the second half of last year to become the exclusive distributor of Italian coffee machine brand Victoria Arduino in South Korea. The company is expecting this to have a positive effect on its revenue from this year, which could make its private equity owners reconsider the timing of a sale.
Founded in 1978, Ohjin Corporation supplies and maintains kitchen equipment – such as coffee machines, ovens and ice makers – for major coffee chains including Starbucks, Ediya and Hollys. The company’s customers also include restaurant chains like Pizza Hut and McDonalds as well as Hanwha Hotels & Resorts and CJ Foodville.
Ohjin Corporation had about 9.8 billion won in cash and cash equivalents at the end of 2019 and its EBITDA was 4.4 billion won. Given this information, the company’s valuation is expected to be between 45 billion won and 50 billion won.
(By reporter Kim Hye-ran)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”