In the past few years, the sale of of both companies, whose combined value is estimated at 1 trillion won rose with the increase in demand for delivery packages. In 2018, Tailim Packaging’s sales rose to 600 billion won, soaring 61 percent from 2016, while Talim Paper logged 480 billion won, up 54.2 percent during the same period.
“The price was important, but other factors were also behind the decision to select Sae-A as the preferred bidder,” said an IMM PE official. “We thought it could manage the companies in the long term,” the official said, adding that the final price will be decided after due diligence and negotiations.
Founded in 1986, Sae-A, specializes in original equipment manufacturing, operatating 40 clothing factories around the world including in the US, Vietnam and Indonesia. Its clients include global clothing brands such as Gap and Uniqlo. The company’s sales amounted to 1.77 trillion won last year.
“We’re diversifying our business portfolio. Last year, we acquired STX Entech, engineering, procurement, construction business from STX Heavy Industries,” a company official said. “We participated in the bidding after taking into consideration the high profitability and potential of Talim as the No. 1 in the industry and the synergies with our existing businesses.
Once the deal is closed, Sae-A will be the first nonpaper maker that will own a corrugated fiberboard company. The deal is expected to close by early next year.