This article was published on Aug. 6, 2025, at 1:40 p.m. on the ChosunBiz MoneyMove site.
Global private equity fund manager Bain Capital has confirmed it has already received approval from the global investment committee for the acquisition of HS Hyosung Advanced Materials' tire cord division. Although some have raised doubts about Bain Capital's willingness to acquire, it has been reported that discussions on acquisition financing have progressed significantly.
According to investment banking industry sources on the 6th, Bain Capital was selected as the preferred negotiation target for the acquisition of the tire cord division last week, and it is preparing detailed negotiations for the stock purchase agreement (SPA). In the preliminary bidding conducted by HS Hyosung, it has been reported that Bain offered around 900 billion won, surpassing JKL Partners and STIC Investments, who proposed a price in the 800 billion won range.
Some have raised questions about Bain Capital's intent to acquire, as Bain was abruptly selected as the preferred negotiation target in a two-way battle between JKL and STIC in the market. The gap between the prices offered by the prospective buyers and the price originally desired by HS Hyosung was so large that the possibility of the deal being abandoned was also mentioned.
However, it is known that Bain Capital has conducted a significant amount of due diligence on the tire cord division ahead of the investment committee process. Additionally, it has held discussions with multiple financial institutions to select an intermediary for acquisition financing, and Hana Bank and Mirae Asset Securities are reported to be potential candidates.
An IB industry source said, "The tire cord division of HS Hyosung operates in several countries, so a complex carve-out structure must be established differently for each country, which makes it a challenging transaction," adding, "It is possible that an agreement was reached to submit the letter of commitment (LOC) later because the structure has not been finalized."
HS Hyosung Advanced Materials began the sale process for the tire cord division in February of this year, starting with preliminary bidding. Bain Capital aims to finalize the SPA by next month at the latest. The division reportedly recorded over 900 billion won in sales last year, with an operating profit before depreciation and amortization (EBITDA) of around 150 billion won.
Tire cord is a key material for tires that supports the load of the vehicle body. With a market share of number one in North America and number three in Europe, HS Hyosung's tire cord business is evaluated as having great growth potential due to the expansion of electric vehicle adoption. This is because the demand for high-strength tires that can support the weight of electric vehicle batteries is increasing.