This article was published on May 15, 2025, at 5:26 p.m. on the ChosunBiz MoneyMove site.
Blackyak I&C will complete the acquisition of the fire-fighting equipment manufacturing and sales company Hanjoo Chemical through its subsidiary this month. The company states that the purpose is to expand its business area, but the market analyzes it is also related to the succession work of the second generation owner of the BYN Blackyak Group.
According to investment banking (IB) industry sources on the 15th, Blackyak I&C's subsidiary ST Beta First is set to pay the remaining balance on the 29th, completing the acquisition of Hanjoo Chemical worth a total of 74.1 billion won. ST Beta is a special purpose company (SPC) established to acquire Hanjoo Chemical. Since March, Blackyak I&C has been steadily providing financial support to ST Beta. On the 14th, it announced a debt guarantee of 48 billion won for ST Beta. Essentially, this means Blackyak I&C is acquiring Hanjoo Chemical.
Blackyak I&C cited the expansion of its existing industrial safety products business as the reason for acquiring Hanjoo Chemical. Established in 2013, Blackyak I&C manufactures and sells industrial safety shoes, safety clothing, and industrial safety products. The company is largely owned by Chairman Kang Tae-sun's eldest son, Kang Jun-seok (65%), and his youngest daughter, Kang Young-soon (28%), both of whom hold most of the equity. Although it uses the name 'Blackyak' and receives support from BYN Blackyak, there is no equity relationship.
The market cites succession as the essential background for the acquisition. Hanjoo Chemical, established in 2011, manufactures and sells fire-fighting equipment and extinguishers. As of the end of last year, the largest shareholder was Hanchang, holding 50.04% of the equity. While industrial safety products and fire-fighting equipment share broad similarities, it is difficult to see a direct correlation. Additionally, Hanjoo Chemical recorded a net loss of 6.1 billion won and 7 billion won for 2023 and 2024, respectively. Concerns are rising that the corporate value may be declining relative to its price.
However, operating profit is consistently being generated. The allowance for doubtful accounts, reflecting the potential inability to collect receivables, amounted to 14 billion won (2024) and 9.3 billion won (2023). Despite these figures, the operating structure remains sound.
Analysis indicates that BYN Blackyak Group is in a situation where it needs to accelerate the succession process. The second generation succession work for BYN Blackyak began in January of this year, with the KOSDAQ market listing of Blackyak I&C marking the starting point. Chairman Kang Tae-sun, born in 1949, is 76 years old this year. Given that generational transitions typically take 10 to 20 years, some consider that he has started the process relatively late. President Kang Jun-seok, born in 1981, joined Blackyak in 2009.
The industry's perspective is that Blackyak I&C's choice of a merger with a special purpose acquisition company (SPAC) instead of direct listing was likely to save time.
In this context, Hanjoo Chemical, which has come onto the market as so-called 'urgent sales,' seems to have been a suitable target for acquisition. Hanchang has been pursuing the sale of Hanjoo Chemical since 2023. At that time, it was agreed that a limited company called Na Ban Holdings would acquire it for 56 billion won, but the contract fell through due to a failure to deposit funds. The external auditor expressed a refusal of opinion in last year's audit report, citing ambiguity in the process. To avoid delisting, Hanjoo Chemical needed to be sold as quickly as possible, aligning with Blackyak I&C's need to increase its size in a short period.
An industry insider noted, 'It's difficult to make an accurate valuation since it is a non-listed company, but Chairman Kang Tae-sun's equity in BYN Blackyak is estimated to be at least 100 billion won, making it challenging to simply gift or inherit the stocks.' It is forecasted that as Blackyak I&C grows, there will be strong possibilities of vertical integration through mergers, and movements regarding equity sales are anticipated when President Kang Jun-seok's one-year-and-six-month stock holding obligation is lifted.
A Blackyak I&C representative stated regarding the background of the Hanjoo Chemical acquisition and future plans, 'Once the acquisition is finalized, we plan to invite institutional investors to hold an IR (investor relations) meeting to explain in detail.'