Hahn & Co. acquires SK Specialty for $1.8 billion

Hahn & Co., South Korea’s largest private equity firm, has finalized the acquisition of SK Specialty Co., the world’s leading producer of specialty gases used in semiconductor and advanced display manufacturing, in a deal valued at 2.6 trillion won ($1.77 billion), the company announced on Monday.

Following the deal, the Seoul-based buyout firm controls an 85% stake in SK Specialty, while SK Group holds the remaining 15% stake, according to a company news release.

The deal closure comes about three months after the private equity firm agreed to take over the specialty gas firm under SK Group.

SK Specialty supplies special gases such as nitrogen trifluoride, tungsten hexafluoride and silane, key materials used in chip and display fabrication.

Specialty gas demand is expected to continue rising amid the robust semiconductor business driven by the global artificial intelligence boom.

SK Specialty’s key customers include industry giants such as Samsung Electronics Co. and SK Hynix Inc., as well as other global multinational companies.

Its sales to sibling company SK Hynix comprised 19% of its total revenue of 681.7 billion won in 2023.

The latest deal is one of Hahn & Co.’s multiple acquisitions of SK Group companies.

Since 2018, it has snapped up SK Shipping Co., K Car Co., SK D&D Co. and SKC’s industrial film business.

Last December, it also agreed to buy the chemical mechanical polishing (CMP) pads manufacturing division of SK Enpulse Co., wholly owned by SKC Ltd., for 341.0 billion won, the latest in a series of its acquisitions of Korea’s No. 2 conglomerate’s businesses.

The acquisition of SK Specialty marks the 37th transaction of Hahn & Co., which manages 50.7 trillion won in assets, in Korea.

Write to Sookyung Seo at skseo@hankyung.com

Jennifer Nicholson-Breen edited this article.