This article was published on July 21, 2025, at 4:41 p.m. on the ChosunBiz MoneyMove site.
UAMCO and domestic private equity fund (PEF) operator Pinewood Private Equity are pushing to sell auto parts company Dynamec. It has been about six years since they acquired the management rights of Dynamec in 2019. With the liquidation period of the blind fund used for the equity acquisition approaching and the company's value rising due to improved performance, it seems they have determined now is the right time to sell.
According to the investment banking (IB) industry on the 21st, UAMCO and Pinewood PE have decided to sell the equity of Dynamec's management rights and are coordinating the timing. However, it is known that they are not yet in the process of advancing to contact potential buyers. The sellers are expected to distribute a request for proposal (RFP) soon to select an underwriter.
Founded in 1977, Dynamec is a company that manufactures electronic parts for cars, including brake pistons and powertrains. It has expanded its business by securing global companies like Hyundai and Kia, as well as BMW, Volkswagen, and Volvo as customers, and establishing production plants in Chungnam Nonsan and Gyeongbuk Gyeongju.
However, performance began to deteriorate due to sluggishness in the U.S. and Chinese markets, China's retaliation against the THAAD (High-Altitude Area Defense) system, and the closure of the GM Korea Gunsan plant. As order volumes decreased, sales, which had been around 120 billion won, declined, and in 2018, Dynamec transitioned to a deficit and eventually applied for corporate rehabilitation procedures at the Seoul Bankruptcy Court.
Dynamec was selected as the first company in the court's autonomous restructuring (ARS) program and pursued business normalization. The ARS program is a system where applicants for corporate rehabilitation procedures and creditors negotiate restructuring plans for up to three months. During the period the initiation of corporate rehabilitation procedures is suspended, businesses can continue operations as before, which is a means to prevent indiscriminate creditor actions and credit rating declines. However, after ultimately failing to negotiate with creditors, Dynamec attempted to sell its management rights in 2019.
In a stalking-horse deal where a public competitive bid was conducted after selecting a preliminary acquirer, UAMCO and Pinewood PE secured management rights for a total of 30 billion won after being selected as preliminary acquirers. The largest shareholder of Dynamec is DY Metal Holdings, which holds 100% equity in the company. DY Metal Holdings is a special purpose corporation (SPC) established by UAMCO and Pinewood PE.
Using funds from the blind fund established by UAMCO and Pinewood PE in 2017, named 'UAMCO-Pinewood Corporate Financial Stability Private Equity Limited Partnership,' they invested 20 billion won in DY Metal Holdings. Korea Asset Management Corporation (KAMCO), which participated as an institutional investor (LP), also invested 10 billion won. This marks the first case of KAMCO entering the restructuring market for distressed companies since its establishment.
Since UAMCO and Pinewood PE acquired Dynamec, performance has steadily improved. In 2018, the year they entered corporate rehabilitation procedures, the revenue was 103.2 billion won, with an operating loss of 6.6 billion won. After transitioning to a deficit, operating losses continued until 2020, but they succeeded in turning a profit in 2021. At the end of last year, operating profit recorded 3.7 billion won.
An industry insider noted, "Since Dynamec's key products, such as brakes and powertrains, are essential components in automobiles, the steady demand is a key investment point," adding that "the performance trend is expected to continue even with the transition from internal combustion vehicles to electric vehicles."