HS Hyosung Advanced Materials has selected Bain Capital as the preferred bidder for its tire steel cord business unit.
According to the investment banking (IB) industry on the 28th, HS Hyosung Advanced Materials announced that it had chosen Bain Capital as the preferred bidder, stating, "We will decide on the specific details through consultation with the preferred bidder." The sales broker is Samjong KPMG.
Steel cords are key materials that enhance the durability and shape stability of tires. HS Hyosung Advanced Materials is the only corporation producing all three major tire reinforcement materials: polyester, nylon, and steel cords. Last year, it recorded a revenue of 860 billion won, achieving the first market share in North America and the third in Europe for the global tire steel cord sector.
It is reported that the main bidding process held in June included STIC Investments, JKL Partners, and Bain Capital. Approximately 10 investment firms, including Middle Eastern sovereign wealth funds and foreign strategic investors (SI), participated in the preliminary bidding, but only four, including STIC Investments, JKL Partners, Bain Capital, and a Chinese SI, were selected as qualified candidates for the shortlist.
The sale price of HS Hyosung Advanced Materials' tire steel cord business unit is reported to be in the mid-1 trillion won range, which is approximately 10 times the annual EBITDA of 140 billion won.