IMM Private Equity (IMM PE) has been named the preferred bidder for the acquisition of Kolon Industries' materials business unit. Kolon Industries has been pursuing a carve-out sale of its printed circuit board (PCB) and display materials units as part of a business restructuring, or rebalancing. IMM PE has been pursuing aggressive mergers and acquisitions (M&A), recently agreeing to acquire CGBio and Ehwa Diamond Industrial.
According to the investment banking (IB) industry Tuesday, IMM PE was named the preferred bidder for Kolon Industries' materials business unit the previous day. Kolon Industries had selected Samjong KPMG as its advisor and approached a small number of potential buyers regarding the sale of its PCB and display materials units. The combined revenue of the two units is approximately 200 billion won, with an acquisition price in the range of 200 billion won being mentioned.
Kolon Industries produces specialty epoxy resins for copper clad laminate (CCL), a core material for printed circuit boards. In its display coating liquid business, the company produces overcoat (transparent protective film) products for planarization and pixel protection of organic light-emitting diode (OLED) panels. Although both businesses have stable profit structures, they were classified as sale targets to secure cash for strengthening future advanced materials businesses.
Among the PCB materials produced by Kolon Industries, the business related to modified polyphenylene oxide (mPPO) was excluded from the sale. Modified polyphenylene oxide is a high-value-added product with excellent insulation performance, classified as a material for artificial intelligence (AI) semiconductors. As a business that could grow rapidly along with the growth of the AI semiconductor market, it was not included in the carve-out.
IMM PE has been actively expanding its portfolio this year. In June, it agreed to acquire a 51% stake in a bio-regenerative medicine company affiliated with the Daewoong Group for 561 billion won, and in May, it signed a stock purchase agreement (SPA) to acquire a controlling stake in Ehwa Diamond Industrial, Korea's top diamond tools company, for approximately 400 billion won.
