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A view of the Aekyung Group headquarters. (Photo = Aekyung Group) |
[Alpha Biz= Kim Jisun] Aekyung Group is moving forward with the sale of its household goods and cosmetics subsidiary, Aekyung Industrial. According to industry sources on the 1st, Aekyung Group has appointed Samjong KPMG as the lead advisor and has begun the divestment process. The sale includes approximately 63% of Aekyung Industrial's controlling shares, currently held by AK Holdings and Aekyung Asset Management.
Founded in 1954 as Aekyung Yugi Industry, Aekyung Industrial is the cornerstone business of Aekyung Group. The company owns well-known household brands such as Kerasys and 2080, as well as cosmetics brands including Luna.
Last year, Aekyung Industrial reported sales of 679.1 billion KRW and an operating profit of 46.8 billion KRW. The market estimates the sale price to be around 600 billion KRW. Additionally, Aekyung Group is reportedly planning to sell Jungbu Country Club, located in Gwangju, Gyeonggi Province.
Aekyung Group’s decision to sell Aekyung Industrial, considered one of its key cash cows, is reportedly aimed at reducing its debt. As of the end of last year, AK Holdings, the group’s holding company, had net interest-bearing debt exceeding 2 trillion KRW. The company's debt ratio surged from 233.9% in 2020 to 328.7% last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
