Fledgling two Korean private funds have acquired nonwoven fabric maker Kolon Advanced Fiber Inc. from textile conglomerate Kolon Group for $61 billion won ($52.5 million) on hopes of high returns from investment with the new catch’s high growth potential.
According to investment bank industry sources on Thursday, Centroid Investment-Yelrosi Management consortium has signed an agreement with Kolon Group to purchase 100 percent stake in Kolon Advanced Inc. The private fund consortium reportedly will pay around $61 billion won for the stake. A source who has an intimate knowledge of the deal said the seller directly sold the stake to the buyer group without an auction and third-party sale advisor.
Kolon Advanced Fiber makes nonwoven fabrics used in diapers and sanitary napkins. It was spun off from Kolon Group’s automotive and life materials making unit Kolon Glotech Inc. in July this year. Kolon Glotech generated 64.5 billion won in sales from the advance fiber business last year.
The funds plan to strengthen Kolon Advanced Fiber’s overseas business. According to market tracker Freedonia Group, the global nonwovens market is estimated to grow 7.2 percent on average every year by 2022.
The deal would make the fledgling funds’ biggest achievements. Centroid Investment was founded in 2015 by Jung Jin-kyuk, an investment banker from Macquarie Securities. Yelrosi Management, less than a year old, was opened by Joo Woo-sik who previously headed Samsung Group’s investor relations team and served as chief vice president of state-run Korea Development Bank Group.
By Kang Woo-seok and Cho Jeehyun
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