South Korea’s bolt and nut manufacturer Dongah Co Ltd has been put up for sale, with its strong financial performance expected to draw potential buyers.
Dongah Holdings, a parent company of Dongah, has hired Samjong KPMG to handle the process to offload its 100% stake in the bolt and nut producer, industry sources said on October 15. Limited competitive bidding is currently underway.
Established in 1961, Dongah started producing high tensile bolts used in steel bridges and steel structures at its Yeongdeungpo plant in Seoul, and expanded its plant in Changwon, Gyeongsang Province in 1991. It took over Dongah Construction Industrial Co Ltd’s bolt business in 2010. The company was split off from Dongah Holdings in 2018, which owns companies including Inter-Burgo Country Club.
The sale process is likely to be carried out smoothly, due to Dongah’s strong financial performance. The company’s revenue was at 85.4 billion won ($74 million) last year, with an operating income of 15.3 billion won, which increased by 11% and 38%, respectively, from a year ago. The company’s operating margin of over 10% is drawing attention from potential buyers including private equity firms. (Reporting by Se-hun Jo)