SKC to sell unit to Glenwood PE at $390 mn for future biz

SKC Ltd., a South Korean chemical materials maker, is set to sell a subsidiary to Glenwood Private Equity in a deal estimated at 500 billion won ($389.7 million) as the company is dropping non-core businesses to seek future growth engines from new industries.

The subsidiary of the country’s second-largest conglomerate signed a memorandum of understanding with the Seoul-based PE firm to sell a 100% stake in SK Pucore, according to investment banking industry sources on Monday. SKC and Glenwood PE aim to conclude the deal next month.

SK Pucore was founded in 2015 as Mitsui Chemical & SKC Polyurethanes Inc. (MCNS), a $1.1 billion joint venture between SKC and Japan’s Mitsui Chemicals Inc. They agreed to terminate the partnership on the 50-50 JV in September 2021 and MCNS became SKC’s wholly-owned subsidiary. SKC changed the unit’s name to the current one in May 2022.

SK Pucore manufactures eco-friendly polyurethane materials such as bio-polyol with a share of some 40% in the South Korean polyol market. The company developed eco-friendly technology to transform waste polyurethane into polyol for the first time in the country.

Its operating profit fell 30% to 43.4 billion won last year as sales dipped 1.8% to 720.6 billion won.

EXIT NON-CORE BUSINESSES TO SEEK NEW GROWTH ENGINES

SKC was understood to have decided on the sale to focus on new businesses including electric battery material copper foil and semiconductor ingredients.

The company already unloaded its industrial film unit to a local PE firm Hahn & Co. at 1.6 trillion won to exit from non-core businesses.

SKC reportedly plans to use those proceeds to expand the production capacity of SK Nexilis Co., its copper foil-producing subsidiary, and acquire other companies.

SKC is slated to buy a controlling stake in semiconductor test maker ISC Co., in a deal estimated at 350 billion to 400 billion won.

Write to Ji-Eun Ha at hazzys@hankyung.com
 
Jongwoo Cheon edited this article.