Taekwang Industrial Co., Ltd.’s Acquisition of Daewoo International Corp.’s Busan Textile Plant

On December 9, 2013, Taekwang Industrial Co., Ltd. (“Taekwang”) acquired Daewoo International Corp.’s Busan textile plant for approximately KRW 157 billion.  The Busan plant mainly manufactured interior materials for cars and raw/subsidiary materials for shoes.

Taekwang had already been purchasing a large amount of synthetic leather shipments from the Busan factory, and thus the acquisition was expected to create significant synergies for Taekwang due to the formation of a vertical business structure.  Lee & Ko acted as the advisor for Taekwang in connection with the transaction.