Private equity fund (PEF) management firm Hahn & Company is selling semiconductor component manufacturer Solmix (formerly SK Enpulse Fine Ceramics Division).
On the 11th, according to investment banking (IB) industry sources, Hahn & Company has selected TAE KWANG CORPORATION as the preferred negotiation partner for the sale of Solmix. The two sides are currently discussing transaction amounts. The transaction value is estimated to be around 400 billion to 500 billion won.
Solmix is a company that produces fine ceramics essential for manufacturing semiconductors and liquid crystal display (LCD) devices. Hahn & Company acquired the fine ceramics division of SK Enpulse for about 330 billion won in February last year and subsequently changed the company name to Solmix.
After Hahn & Company acquired Solmix, the company's performance improved rapidly. Last year's earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to over 40 billion won, double that of the previous year, and revenue rose from 167 billion won to 188 billion won.
The reason Hahn & Company is selling Solmix appears to be to manage semiconductor exposure for its fourth fund. Hahn & Company also invested in SK Specialty (about 2.63 trillion won) and the CMP pad division of SK Enpulse (about 334.6 billion won) with its fourth fund this March.
TKG, selected as the preferred negotiation partner for Solmix this time, is an OEM and ODM company responsible for developing and manufacturing footwear. It was established by Chairman Park Yeon-cha in 1980. In addition to footwear, TAE KWANG CORPORATION is active in the chemical and materials business. In December 2021, it changed its name from Tae Kwang Industrial.