Hahn & Co. taps TKG Taekwang as preferred bidder for Solmics

Hahn & Co., South Korea’s leading private equity firm, has named TKG Taekwang Co., a domestic footwear manufacturer, as the preferred buyer of Solmics Co., a semiconductor parts maker.

According to investment banking sources on Monday, the private equity house is in talks with TKG Taekwang to sell its entire 100% stake in Solmics, a deal expected to fetch between 400 billion and 500 billion won ($300 million-$360 million).

Hahn & Co. acquired Solmics, previously the fine ceramics business of SK Enpulse Co., for 330 billion won in February 2024.

In 2024, Solmics posted an EBITDA of about 40 billion won, doubling from 20 billion in 2023. Sales climbed 12% to 188.0 billion won over the same period.

Under SK Group's ownership, its sales were largely concentrated within SK affiliates. After Hahn & Co.'s acquisition, the company expanded its customer base to include Samsung Electronics Co. and overseas clients.

It has also teamed up with customers on R&D projects to develop new products, boosting the localization rate of related components.

The divestment is part of Hahn & Co.'s move to rebalance the portfolio of its fourth fund, used for the Solmics acquisition – now heavily exposed to the semiconductor value chain.

The fund has been mobilized to take over SK Specialty Co. in a 2.63 trillion won deal in April and to purchase the chemical mechanical polishing (CMP) pads manufacturing division of SK Enpulse for 334.6 billion last December.

Founded in 1980 by Chairman Park Yeon-cha, TKG Taekwang is an original equipment (OEM) and original design manufacturer (ODM) specializing in footwear. It changed its name from Taekwang Industrial to TKG Taekwang in 2021.

Write to Eun-Kyung Song at norae@hankyung.com