Hyundai Steel selected a consortium led by Woori PE Asset Management and Bailey Private Equity to acquire its forging subsidiary Hyundai IFC for an enterprise value of up to 300 billion won ($216 million).
The South Korean steelmaker will retain a 20% stake while the private equity group takes an 80% controlling interest in the unit, according to investment banking industry sources. The transaction follows a bidding process that concluded in August, with Mirae Asset Securities and Pine Tree Asset Management among the unsuccessful contenders.
Hyundai IFC generated operating profit of 39.8 billion won ($29 million) on revenue of 527 billion won ($380 million) in 2024, representing a doubling of profits despite a slight revenue decline. The forging business specializes in automotive and industrial components.
The divestiture comes as Hyundai Steel pursues aggressive U.S. expansion plans. The company recently announced a $5.8 billion electric arc furnace facility in Louisiana, part of parent Hyundai Motor Group’s $21 billion American investment commitment. While company executives maintain the subsidiary sale isn’t directly tied to funding that project, the timing suggests capital optimization efforts.
KPMG Samjong advised on the transaction. The deal proceeds as South Korea’s new labor legislation creates additional regulatory considerations for corporate restructuring activities.
