Private equity (PE) firm Corstone Asia has acquired a controlling 78% stake in fire resistant door maker Kookil Door Tech for 36 billion won ($32 million) in a partnership with Samho Green Investment, and announced ambitious expansion plans.

Corstone Asia invested 26 billion won in the deal and Samho Green Investment 9 billion won, industry sources said on Wednesday (February 17). They signed a stock purchase agreement at the end of last year and completed payment recently.

Founded in 1995, Kookil Door Tech is South Korea’s third largest provider of fire resistant door systems, with production bases in Incheon and Hwaseong. It is currently building a research and development center and a factory in Cheongla.

The company’s clients include Samsung C&T, Lotte Engineering & Construction, Hyundai Development Company and Hanwha E&C. Kookil Door Tech recorded revenue of 45.3 billion won and operating income of 6.3 billion won in 2019.

Corstone Asia is betting on Kookil Door Tech’s technological competitiveness and the enormous growth potential of the fire door market as the South Korean government implements tougher safety regulations on construction. The country’s housing market is also showing signs of recovery from the Covid-19 economic downturn.

Corstone Asia plans to expand Kookil Door Tech through technology development and new businesses. The company will enter the commercial fire door market and ESG (environment, social, and governance) sectors, utilizing its R&D efforts.

A new chief executive officer has been appointed at the company and Corstone Asia has started the post-merger integration process. (Reporting by Se-hun Jo)