] SK Networks
, a trading unit of SK Group, is acquiring Tongyang Magic, a local home appliance maker whose flagship products include water purifiers, for 610 billion won (US$550 million).
According to industry sources on Oct. 11, the company was planned to sign a sale and purchase agreement with Tongyang’s largest shareholders Glenwood Private Equity and NH Private Equity, both based in Korea, later in the day.
Considering the Glenwood-NH consortium acquired the company for about 280 billion won in 2014, the internal rate of return stands at about 30 percent, one of the highest in buyout deals here.
The new purchase is also expected to be a boon for SK Networks as it is seeking business synergies with other affiliates such as SK Telecom in the upcoming Internet of Things era that connects all appliances and cars via the internet.
By Lee Ji-yoon (firstname.lastname@example.org