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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul – Taekwang Group is set to acquire Aekyung Industrial, the flagship and founding company of Aekyung Group, according to industry sources on September 7.
Aekyung Group has reportedly selected a consortium led by Taekwang Industrial, together with T2 Private Equity and Yuanta Investment, as the preferred bidder. The deal covers approximately 63% of management control shares in Aekyung Industrial held by AK Holdings, Aekyung Asset Management, and related parties. Samjong KPMG is managing the sale, with the transaction price estimated in the high KRW 400 billion range.
Established in 1954 as Aekyung Chemical, Aekyung Industrial has grown into a household name in Korea’s consumer goods and cosmetics sector. It manufactures and markets daily necessities such as shampoo, toothpaste, and soap, with well-known brands including “2080” (toothpaste), “Kerasys” (shampoo), and “Trio” (dishwashing detergent). In 2023, the company reported KRW 679.1 billion in revenue.
Facing liquidity pressures from underperforming retail and petrochemical businesses, Aekyung Group is selling Aekyung Industrial—long regarded as its cash cow—to reduce debt. The group has already disposed of non-core assets such as Jungbu Country Club, and is now divesting even its founding business. As of the end of 2023, AK Holdings held total debt of about KRW 4 trillion, with a debt-to-equity ratio of 328.7%.
Taekwang Group, which announced in July its plan to restructure businesses amid a petrochemical industry downturn, has earmarked significant capital for acquisitions in cosmetics, energy, and real estate development. By acquiring Aekyung Industrial, Taekwang aims to establish cosmetics—backed by the global popularity of K-beauty—as a new growth engine for the group.
The Taekwang-led consortium is expected to sign a share purchase agreement (SPA) and finalize the transaction by the end of the year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
