Private equity fund (PEF) manager Koston Asia will acquire power equipment solutions corporations Woojin M&E.
On the 10th, according to the investment banking (IB) industry, Koston Asia signed a stock purchase agreement (SPA) that day to acquire Woojin M&E. Koston Asia had already been selected as the preferred bidder to acquire Woojin M&E in May and had been conducting due diligence.
The acquisition target is 100% of Woojin M&E equity held by Curious Partners through special purpose company (SPC) Curious Voltage, and the purchase price was said to be in the low 300 billion won range. Koston Asia plans to pay the acquisition price at the end of this month and close the transaction.
Woojin M&E is a corporation specializing in the distribution of power equipment used in the semiconductor and display industries, founded in 1984. Beyond simple distribution, it expanded into power equipment design and installation solutions, and last year its revenue exceeded 200 billion won.
Koston Asia was said to have given high marks to Woojin M&E's cash generation and potential. With demand for power equipment rising on the back of AI data centers and semiconductor plant expansions, Woojin M&E's order intake base is also strengthening, it judged.
In fact, Woojin M&E's operating profit last year was 22.4 billion won, about triple from the previous year. Last year's earnings before interest, taxes, depreciation and amortization (EBITDA) came to 24 billion won. This year's EBITDA is estimated at around 30 billion won, and a multiple of 10 was applied.
As Woojin M&E emerges as a beneficiary corporation of expanding power demand driven by artificial intelligence (AI), fundraising from limited partners (LPs) to finance the acquisition was also said to have proceeded smoothly. Koston Asia's project fund formation is understood to be effectively complete.
An official at an IB firm said, "Woojin M&E was considered a prime asset that even Curious Partners had thought about continuing to hold thanks to favorable power market conditions driven by AI," adding, "Koston Asia is also said to be considering an exit after a future listing."
Meanwhile, Curious Partners is set to post a return a little over two years after acquiring 100% of Woojin M&E equity in June 2024. Considering that the transaction price at the time was around 235 billion won, it is expected to book a disposal gain of roughly 70 billion won.