This article was published on June 11, 2025, at 3:45 p.m. on the ChosunBiz MoneyMove site.
Dorco, which manufactures razors and kitchen products, is reportedly considering participating in the acquisition of Aekyung Industrial. Currently, multiple strategic investors (SI) and financial investors (FI) are said to be contemplating whether to enter the competition, raising interest in whether the bidding will actually be successful.
According to investment banking (IB) industry sources on the 11th, Dorco is among the candidates currently reviewing the acquisition of Aekyung Industrial. An industry insider noted, "Dorco is looking into this seriously," but added, "However, I understand they are not a strong candidate."
Dorco is a company that manufactures and sells razors, kitchen knives, frying pans, and other products. Hong Joo-sik (43.52%) is the largest shareholder, while the Kyeonglim Foundation holds 17.94% and Hong Geon-hee owns 13.88%.
Industry experts interpret that Dorco is considering participating in the acquisition due to its high cash reserves and the potential for business synergy with Aekyung Industrial. As of the end of last year, Dorco's current assets (assets that can be liquidated within one year) amounted to 340 billion won. Last year, its operating profit was 92.5 billion won, a roughly 90% increase compared to the previous year. During the same period, revenue rose 16% to 488.9 billion won.
Given that Dorco's main product is razors, there is potential for synergy with Aekyung Industrial's product lineup, which focuses on popular general consumer goods such as shampoos, soaps, and toothpaste.
The preliminary bidding for the sale of Aekyung Industrial is scheduled for the 19th. According to industry insiders, multiple SIs and FIs are reported to be expressing interest.
A senior official in the IB industry said, "I understand that several places are receiving teaser letters through the lead manager (Samjeong KPMG) for review and are accessing the virtual data room (VDR) for due diligence," and noted, "There is significant interest from buyers, which raises expectations for a successful auction."
There are also forecasts that SIs and FIs may form a consortium to participate in this acquisition, but so far, no such movements have been reported.
Meanwhile, Aekyung Group is expected to overcome a major hurdle if the sale of Aekyung Industrial wraps up smoothly. Last month, it sold its 100% subsidiary, Jungbu Country Club (CC), for about 200 billion won. The desired sale price for the 63.38% equity stake in Aekyung Industrial is reported to be around 600 billion won. Aekyung Group plans to inject the cash generated from the sale into Jeju Air after completing the acquisition of Aekyung Industrial.