A consortium led by Taekwang Industrial Co. will acquire a 63% stake in Aekyung Industrial Co. for 470 billion won ($331 million), betting that cosmetics and household goods can rescue the struggling petrochemical company from years of declining performance.
The transaction, approved by both companies’ boards Monday and set to close in January, values Aekyung Industrial’s shares at an 87% premium to their recent market price. Taekwang formed the consortium with T2 Private Equity and Yuanta Investment after a competitive auction run by Samjong KPMG.
The acquisition marks Taekwang’s first significant deal since 2008, coming as the textile and chemical manufacturer grapples with persistent losses in its core businesses. The company posted an operating loss of 18.9 billion won in the second quarter, reflecting the downturn in petrochemicals that has eroded its traditional revenue base.
For Aekyung Industrial, the sale resolves immediate financial pressures for parent AK Holdings, which needed cash to service debt and support struggling affiliates. The cosmetics maker, known for Luna beauty products and Trio detergents, has lost ground in Korea’s increasingly crowded beauty market, slipping from its former position among the top three players as newer competitors gained share.
Taekwang said it would leverage Aekyung’s portfolio to expand in consumer markets and international sales, banking on sustained demand for Korean beauty products despite intensifying competition. The company has pledged to invest 1.5 trillion won by 2026 in cosmetics, real estate, and energy ventures as it seeks to diversify beyond struggling legacy operations.
The consortium partners will sign definitive agreements by Tuesday, according to people familiar with the transaction.
