Newly-created private equity (PE) firm Buco Company wants to buy a majority stake in South Korean polyethylene terephthalate (PET) sheet manufacturer Doosung Korea.

Buco Company is in talks to acquire old shares in Doosung Korea for about 20 billion won ($18 million), industry sources said on Friday (January 29). Buco Company has started to create a project fund, marketing toward limited partners.

Founded in 2009, Doosung Korea specializes in surface materials for furniture. Its main products include PET, PVC deco and PP deco sheets. The firm has partnered with SK Chemicals, exploiting its leading position in the industrial PET market.

Doosung Korea recorded revenue of 48.1 billion won in 2019, from 30 billion won in 2016. Operating income rose from 1 billion won to 2.7 billion won in the same period.

Since 2012 the company has focused on its export trade, with shipments going to markets like China, Iran and Ukraine.

The owner of Doosung Korea has reportedly decided to sell the company as he can see limited growth potential. Existing shareholders are expected to invest some of the proceeds in a project fund created by Buco Company.

Founded in December, Buco Company is reportedly led by Yang Hee-joon, the former president of Melon Partners. The deal will be the first by the PE firm if it proceeds. (Reporting by Sun-young Kim)