Domestic private equity fund (PEF) operator H&Q Korea is pursuing the acquisition of sports equipment manufacturer Korea OGK.
According to investment banking (IB) industry sources on the 2nd, H&Q Korea is currently engaged in final negotiations for the acquisition of Korea OGK. They plan to finalize the deal by signing a stock purchase agreement (SPA) within 2 to 3 months at the earliest. The target for acquisition is 100% equity of Korea OGK held by founder Chairman Park Soo-an and related parties.
Korea OGK is an optical company specializing in manufacturing sports equipment. They produce sports goggles through methods such as original equipment manufacturing (OEM) and original design manufacturing (ODM). They currently operate the sports eyewear brands WTD, WING, and the kids' fashion brand Kokorik. They also have production subsidiaries in Qingdao, China, and Hanoi, Vietnam.
Last year, on a consolidation basis, Korea OGK recorded sales and operating profit of 87.1 billion won and 12.3 billion won, respectively. H&Q Korea appears to have focused on Korea OGK's stable cash flow generation capability.