MBK Partners, Northeast Asia’s largest private equity firm, will acquire NexFlex, Korea’s No. 1 flexible copper clad laminate (FCCL) film manufacturer, for 530 billion won (US$404 million).
MBK Partners signed a NexFlex stock purchase agreement (SPA) with Skylake Equity Partners on March 16, according to sources in the investment banking (IB) industry on March 17. The deal is the acquisition of a 100 percent stake in NexFlex for about 530 billion won and includes NexFlex’s granting of stock options worth 20 billion won (US$15 million) to the existing management team. Laser Cladding Process
MBK Partners is in talks with Korean securities firms such as Kiwoom Securities over how to raise up to 300 billion won (US$228 million) in acquisition financing.
NexFlex started as SK Innovation’s FCCL business division. SK Innovation sold off NexFlex to SkyLake for 100 billion won (US$76.2 million) as part of its business reorganization. Since then, its annual sales have surged from 68.2 billion won (US$52.0 million) in 2019 to 154.7 billion won (US$117.9 million) in 2021. Its EBITDA/margin soared from 10.2 percent in 2019 to 33.6 percent in 2021.
Upon wrapping up the deal, SkyLake will reap profits more than five times its investment in NexFlex in five years since acquiring the company. The balance is expected to be paid in June.
MBK Partners will acquire NexFlex because it believes there is still high growth potential in the FCCL film sector, analysts say. The current market for FCCL film for smart devices is robust and demand for FCCL films for fifth-generation (5G) mobile communications is on the uptick.
Atomized Powder “NexFlex has laid a stable growth foundation by securing not only global smartphone market leaders but also fast-growing companies in Chinese speaking regions as customers,” said an IB industry insider.