Hahn & Co. holds the position of South Korea’s largest private equity firm. The firm recently finalized a significant acquisition. The target was sk specialty co. This company stands as the world’s leading producer of specialized gases. These gases play a crucial role in the manufacturing of semiconductors and advanced displays. The financial details of the transaction reveal a value of 2.6 trillion won. This equates to approximately $1.77 billion. The official announcement came from the company itself on Monday.

Following the completion of this acquisition, the Seoul-based buyout firm now holds a substantial controlling stake in sk specialty. Their ownership amounts to 85%. The remaining 15% stake continues to be held by SK Group. This information was clearly stated in a company news release. The closure of this deal marks the culmination of a process that began roughly three months prior. At that time, the private equity firm reached an agreement to take over the specialty gas firm. sk specialty had previously operated under the umbrella of SK Group.

sk specialty’s core business involves the supply of various specialized gases. Among these are nitrogen trifluoride, a key component in semiconductor manufacturing. Tungsten hexafluoride is another significant product. Silane also forms part of their specialty gas offerings. These materials are indispensable. They are essential for the fabrication of both chips and displays.

Current projections indicate a continued upward trend in the demand for specialty gases. This anticipated growth is closely linked to the robust performance of the semiconductor industry. The ongoing global artificial intelligence boom serves as a significant driver for this industry. sk specialty boasts a clientele that includes major players in the technology sector. Samsung Electronics Co. is one such prominent customer. SK Hynix Inc. also features as a key client. Additionally, numerous other global multinational companies rely on sk specialty’s products. A significant portion of sk specialty’s revenue comes from its dealings with a related entity. Sales to its sibling company, SK Hynix, accounted for 19% of its total revenue in the year 2023. The total revenue figure for that year reached 681.7 billion won.

This latest acquisition represents one instance in a series of multiple acquisitions undertaken by Hahn & Co. These acquisitions have specifically targeted companies within the SK Group. Since the year 2018, Hahn & Co. has strategically expanded its portfolio through several key acquisitions. SK Shipping Co. was among the companies acquired. K Car Co. also became part of the Hahn & Co. group. Furthermore, SK D&D Co. was added to their holdings. SKC’s industrial film business was another significant acquisition.

In December of the preceding year, Hahn & Co. further expanded its involvement with the SK Group. They reached an agreement to purchase another significant division. This division focused on the manufacturing of chemical mechanical polishing (CMP) pads. SK Enpulse Co., a wholly-owned subsidiary of SKC Ltd., previously owned this division. The transaction was valued at 341.0 billion won. This acquisition represents the most recent in a series of strategic moves by Hahn & Co. These moves involve acquiring businesses from Korea’s second-largest conglomerate.

The acquisition of sk specialty holds particular significance for Hahn & Co. It marks the firm’s 37th transaction within the Korean market. Hahn & Co. currently manages a substantial asset base. Their total assets under management amount to 50.7 trillion won. This latest acquisition further solidifies their position as a major player in the South Korean private equity landscape. The focus on a key supplier to the booming semiconductor industry appears to be a strategic move. It aligns with broader trends in the global technology market. The interplay between artificial intelligence, semiconductor demand, and specialty gas production highlights the interconnectedness of these sectors. Hahn & Co.’s increasing involvement with SK Group suggests a long-term investment strategy. This strategy likely aims to capitalize on the growth potential within these industries.