이 기사는 2021년 06월 24일 07:28 thebell 에 표출된 기사입니다.

Orchestra Advisors Korea has successfully sold golf equipment company Majesty Golf, generating a return of more than 3 times invested capital in just three and a half years.

The private equity (PE) firm has decided to sell Majesty Golf to a consortium led by Smart Score for reportedly 310 billion won ($272 million) based on the enterprise value, according to industry sources Tuesday.

Orchestra Advisors Korea acquired a 100% stake in Maruman Korea, now Majesty Golf Korea, and a 29% stake in Maruman Japan (Majesty Golf) from Cosmo Group for 78.3 billion won in 2017.

The PE firm believed the golf equipment company will show strong growth if it utilizes its high brand valuation amid increasing number of golfers. Orchestra Advisors Korea made Maruman Taiwan as its wholly-owned subsidiary and bought the remaining stake in JASDAQ-listed Maruman Japan for 38 billion won and delisted it. Yuanta Securities provided acquisition financing.

Majesty Golf has grown at a rapid pace since the acquisition, with the company streamlining its range of brands from around 30 to just four main product lines. The company name was also changed from Maruman to Majesty.

Majesty’s market share in the South Korean premium driver market increased to 52% last year thanks to efforts to diversify its products and target golfers in their 30s and 40s.

Majesty posted revenue of 80.8 billion won and adjusted earnings before interest, taxes, depreciation and amortization of 22.8 billion won at the end of 2020, or increases of 15.8% and 48.5% year-on-year.

The sale of Majesty Golf will mark Orchestra Advisors Korea’s first exit, which is estimated to have generated a return of about 3.5 times invested capital in three and a half years. Majesty’s institutional investors, including the Korean Federation of Community Credit Cooperatives, are also satisfied with the firm’s successful first exit. (Reporting by Se-hun Jo)