This week, in the radar M market for businesses up for sale, a supplier of safety equipment and construction components with annual sales of 10 billion Korean won is currently on the market. LG Electronics, one of the initial vendors, has expressed interest in acquiring a defense company. According to the Korea M&A Exchange on February 2, Company A, which provides safety supplies, has been registered as a product for sale. Company A explained that its stable sales and profits stem from supplying products to major domestic companies.
Particularly, its favorable location not only ensures business viability but also enhances the potential for factory utilization, making it one of its key advantages. Company B, a valve manufacturing enterprise with 30 years of experience, is also seeking to expand its operations by initiating investment solicitations and selling its management rights. Company B specializes in producing valves for the power generation, chemical, water treatment, and environmental sectors. It is not only expanding domestically but also looking to grow its international business, aiming to raise its current overseas sales from 20% to over 60% within the next two years. Despite being in the manufacturing sector, it boasts an operating profit margin of 20% with annual sales of 8 billion Korean won.
Additionally, Company C, a specialized automation solutions firm with domestic upper-tier technology in the industrial parallel robot field, has also been listed as a product for sale. The Delta robots manufactured by Company C represent a typical structure of parallel robots, featuring three arms that excel in high-speed gripping and moving lightweight objects. Company C holds numerous intellectual properties related to robotics and is concurrently engaged in targeted system integration (SI) projects. Currently making strides in the pharmaceutical industry, the company anticipates expansion into food, consumer goods, automotive parts, and semiconductor-related engineering in the future. A notable advantage of Company C’s robots is their high load handling capacity, making them suitable for a wide range of applications when compared to competitors.
Moreover, companies looking to expand their new ventures are interested in acquiring firms that can create synergies with their current industry. Company D, a construction materials firm, is looking to acquire a stone mining company and businesses related to construction equipment crushers. The construction-related sector currently operating indicates its intention to acquire management rights to broaden its business scope, with an acquisition budget of up to 15 billion Korean won.
Additionally, LG Electronics’ initial supplier manufacturing company, Company E, has announced plans to acquire materials, components, or equipment firms, or defense companies with technical capabilities in the Chungcheong region for a maximum price of 10 billion Korean won. Food manufacturer Company F has also expressed interest in acquiring a food supply company for up to 5 billion Korean won as part of its growth strategy. Currently, Company F produces convenience foods and supplies them to major distribution companies.
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