This article was published on Feb. 21, 2025, at 2:30 p.m. on the ChosunBiz MoneyMove site.
Amid reports that four global private equity fund (PEF) managers (KKR, Carlyle, Blackstone, Bain Capital) and MBK Partners have entered the acquisition battle for semiconductor equipment company HPSP, MBK is emerging as the most likely candidate.
According to investment banking (IB) industry sources on the 21st, among the five firms that reportedly participated in the acquisition battle for HPSP, the other four firms, excluding MBK, are said to have little actual intent to acquire. A representative from one of the firms remarked, "It's awkward that our name is being mentioned when we didn't even participate." Another industry source noted, "Contrary to what has been reported about the sale of HPSP, it's not such a 'hot deal.'"
Recent reports from the IB and semiconductor industries suggest that the preliminary bidding for HPSP's management rights, which closed last month, has attracted the so-called 'global top three PE' firms, including Kohlberg Kravis Roberts (KKR), Carlyle, and Blackstone, as well as MBK Partners and Bain Capital. As a result, the market has been paying attention to the success of the acquisition battle.
Among these managers, MBK is the one looking most seriously at HPSP. It is reported that Vice Chairman Yoon Jong-ha is spearheading the deal. It is also said that HPSP is highly regarded because it is the only company in the world supplying high-pressure hydrogen annealing (thermal processing) equipment essential for semiconductor manufacturing. HPSP has global semiconductor corporations such as Samsung Electronics, SK hynix, Intel, and TSMC as clients. Some in the industry suggest that MBK, as a domestic manager, has positioned itself more favorably than the other four firms due to HPSP's possession of key semiconductor-related technologies.
The other managers believe that the valuation expected by Crescendo Equity Partners, the selling entity, is excessively high. The equity currently up for sale is 40.8% owned by Crescendo, and the company estimates the sale price at around 2 trillion won. Considering HPSP's market capitalization of 2.6 trillion won in the KOSDAQ, this implies an expectation of about 100% management control premium.
Some in the industry believe that Bain Capital, one of the four 'unenthusiastic' global PE firms, may change its stance. Since Bain Capital is the largest shareholder of Japanese semiconductor firm Kioxia (formerly Toshiba Memory), acquiring HPSP could yield synergistic effects. The Bain Capital consortium also includes SK hynix, which has invested 4 trillion won and indirectly holds a 19% stake in Kioxia.
HPSP is rooted in the semiconductor equipment division of Poongsan Microtech (PSMC), a subsidiary of the Poongsan Group. It came up for sale during the group's business restructuring and was acquired by Crescendo in 2017 for just 10 billion won.
The sale of HPSP's management rights is one of the major trillion-won deals in the market that is drawing attention this year. Currently, other trillion-won companies in the ongoing or soon-to-be-listed transactions in the domestic M&A market include SK Shipping, owned by Hahn & Company (valued at 4 trillion won), VIG Partners' Free Life (valued in the trillions), Macquarie Asset Management's DIG Air Gas (valued at 5 trillion won), and the IS Dongseo and E&F PE consortium's Koentec, Coreentec, and KR Energy (valued at 2 trillion won).