이 기사는 2022년 02월 22일 07시38분 thebell에 표출된 기사입니다

PI Advanced Materials reported its best financial performance ever in 2021 thanks to post-merger integration (PMI) process carried out by Glenwood Private Equity (Glenwood PE) over the past two years.

The polyimide film producer said in a regulatory filing on Friday that it delivered an operating profit of 75.9 billion won ($63 million) and a net profit of 64 billion won on revenue of 301.9 billion won in 2021 on a non-consolidated basis, up 26%, 53% and 15% respectively year-over-year.

Glenwood PE carried out the PMI process after it acquired PI Advanced Materials in March 2020. It has focused on improving management efficiency and launching new products by investing in the mobility, display and semiconductor industries.

The PMI process had five steps: separating affiliates, improving the reporting system, the actual PMI, monitoring funds and improving management.

First of all, Glenwood PE changed the company’s name and re-established the organizational system in line with the company’s vision. At that time, PI Advanced Materials was transformed into a system with two divisions, established the new strategic division and promoted its research center. The launch of the emergency management task force team and the compliance management committee has helped the company to preemptively respond to issues related to compliance management, safety and environment.

PI Advanced Materials has optimized the PI management system that covers functions such as sales, R&D and production, and set up an enterprise resource planning (ERP) system. Its homepage has been updated to provide an intuitive user experience.

The full-fledged PMI process has been carried out by discovering opportunities through market research, establishing a vision, reorganizing and deriving new key performance indicators and building IT infrastructure. In addition, PI Advanced Materials’ Jincheon office was expanded to create more efficient research environment.

Last year, PI Advanced was included in the Kospi 200 index, made up of the 200 largest publicly traded stocks in the country.

Glenwood PE has also closely monitored fund flows, receiving fund management plans every week and financial reports every day. Investment committee meetings have been held to review all investments that PI Advanced Materials plan to make.

The PE firm believed insufficient inventory management deteriorated the company’s cash flow before the acquisition. It has stepped up efforts to improve working capital through inventory management and PI Advanced Materials swung from net borrowings of 51.9 billion won in the first quarter of 2019 to a net cash of 47.3 billion won at the end of 2021.

The PE firm also focused on resolving legal issues including an intellectual property infringement lawsuit that had been ongoing since 2010.

Glenwood PE has put a 54% stake in PI Advanced Materials up for sale, two years after it acquired its management rights for around 607 billion won. The stake is expected to be worth over 1 trillion won. Glenwood PE and its sale advisor JP Morgan sent out an investment teaser to potential buyers. (Reporting by Ha-na Suh)