Hyundai Steel to its Forging Business Unit
Under the terms of the agreement, the Woori PE-Bailey PE consortium will acquire 80% of Hyundai IFC’s shares.
SEATTLE (Scrap Monster): Leading Korean steelmaker Hyundai Steel announced that its forging business unit, Hyndai IFC, will be acquired by the private equity (PE) consortium of Woori PE Asset Management and Bailey Private Equity. The sale is considered part of efforts by the company to streamline its operations and secure capital to accelerate U.S. investments.
The main bid was held on August 14. The participants in the bid included the Woori PE-Bailey PE consortium, Mirae Asset Securities, and Pine Tree Asset Management. The steelmaker announced yesterday that it has selected the Woori PE-Bailey PE consortium as the preferred bidder for the sale of its subsidiary.
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Under the terms of the agreement, the Woori PE-Bailey PE consortium will acquire 80% of Hyundai IFC’s shares. The remaining 20% will be retained by Hyundai Steel. The enterprise value of the deal is estimated at around 250 to 300 billion won, which is equivalent to nearly $180 to $216 million.
Hyundai IFC manufactures shipbuilding forgings and steel billets. The subsidiary had posted 527.3 billion won in revenue and 39.8 billion won in operating profit in 2024.
Additionally, Hyundai Steel is reportedly seeking to sell Hyundai Steelpipe- another wholly-owned subsidiary. The unit produces steel pipes, mainly for oil and gas, construction and automobile industries. Certain strategic investors as welll as some private equity firms are in the race to acquire the business unit, reports indicate.