IMM Private Equity has been selected as the preferred bidder to acquire Kolon Industries' semiconductor and display materials division, with a memorandum of understanding expected to be signed mid-month, according to investment banking industry sources on the 4th. The transaction follows IMM PE's May signing of a stock purchase agreement to acquire Ewha Diamond, a semiconductor and display process diamond tool manufacturer valued at approximately 400 billion KRW. The strategic move expands IMM PE's manufacturing and materials portfolio through its Rose Gold Fund 5, targeting high-value electronic materials assets in the semiconductor and display supply chain.
IMM PE Targets Kolon Industries PCB and Display Coating Divisions
The transaction targets Kolon Industries' printed circuit board (PCB) materials and display coating liquid divisions, with combined revenues reported at approximately 200 billion KRW. PCB materials include dry film resist (DFR) and specialty epoxy resins, though the modified polyphenylene oxide (mPPO) division—noted as a key AI semiconductor material—has been excluded from the sale scope. Industry observers indicate the MOU signing is expected around mid-month.
Rose Gold Fund 5 Accelerates Materials Portfolio Diversification
IMM PE is deploying capital through its blind fund Rose Gold Fund 5 to diversify holdings in manufacturing and materials sectors. The firm signed a stock purchase agreement in May to acquire Ewha Diamond for approximately 400 billion KRW, currently undergoing Korea Fair Trade Commission merger review with transaction closing anticipated in the third quarter. Industry sources attribute IMM PE's preferred bidder selection to the firm's clear sector diversification strategy and preparedness, despite some competing bidders expressing concerns about limited due diligence time before binding offer submission.
Carve-Out Transaction Requires Personnel and System Separation
The deal structure involves a carve-out transaction separating business divisions from a conglomerate rather than acquiring an independent legal entity. Completing the transaction requires coordination on personnel succession, production facility separation, and enterprise resource planning (ERP) system establishment—conditions that make carve-out deals more complex than standard buyout transactions. IMM PE is expected to begin selecting acquisition advisory teams to conduct detailed due diligence following its preferred bidder status confirmation.
FAQ
What did IMM Private Equity announce regarding Kolon Industries?
IMM PE was selected as the preferred bidder to acquire Kolon Industries' semiconductor and display materials division, with a memorandum of understanding expected to be signed mid-month according to investment banking sources on the 4th.
What other acquisition has IMM PE recently pursued in the materials sector?
In May, IMM PE signed a stock purchase agreement to acquire Ewha Diamond, a semiconductor and display process diamond tool manufacturer, in a transaction valued at approximately 400 billion KRW, currently undergoing regulatory review.
