Nongshim will acquire the seasoning and soy sauce manufacturer SE WOO. It is a corporation owned by Shin Dong-won, chairman of the Nongshim Group, through his maternal family.
According to the investment banking (IB) industry on the 22nd, Nongshim Holdings is in the process of acquiring SE WOO. The acquisition price is reported to be around 100 billion won.
The company stated in a public disclosure on that day, "We are considering the acquisition of SE WOO as part of our efforts to maximize synergy with the existing food business," adding, "Nothing has been finalized as of now."
SE WOO has its origins in Daehan Textile, a textile processing company established in 1973. It later changed its name from Samwoo Agricultural Products to SE WOO Agricultural Products, and then simply to SE WOO. It currently manufactures and sells products such as gochujang, doenjang, and seasoning powders for ramen.
SE WOO's revenue last year was 136.8 billion won, with an operating profit of 10.5 billion won and a net profit of 9 billion won.
The average price-to-earnings ratio (PER) of beverage-related companies listed on the domestic stock market is about 15 times. The sale price of 100 billion won reportedly reflects a PER of 11 times.
Shin Dong-won's distant cousin, Kim Jeong-jo, holds 18.18% of SE WOO's equity, while Kim Chang-kyung, presumed to be Kim Jeong-jo's son, holds 60.24%. They have received dividends annually. Last year, a total of 3.3 billion won was distributed, and 4.1 billion won was distributed the year before. The payout ratios were 36% and 59%, respectively.