Private equity firm PAG Asia has signed a deal to sell the South Korean toymaker Young Toys Inc to a consortium comprising education group Mirae-N and PE firms Nvestor and Corstone Asia.
Hong Kong-based PAG Asia will sell its 100 per cent stake in the company for 150 billion won ($127 million), which is about 50 billion won less than the original estimate, Koreaninvestors.com reported on Thursday. BDA Partners is the advisor for the transaction.
PAG confirmed the exit deal with the three buyers to DealStreetAsia but did not divulge details.
The sale was delayed after Mirae-N put negotiations on hold due to the growing economic uncertainty caused by the COVID-19 pandemic, according to Koreaninvestors.com. However, the acquisition talks resumed as Young Toys enjoyed an unexpected increase in sales amid protracted suspension of preschools and kindergartens, the report added.
Young Toys is the maker of the popular Tobot, a toy car that transforms into a humanoid. It’s estimated 2020 EBITDA is around 20 billion won, equivalent to last year’s level, according to Koreaninvestors.com. PAG Asia acquired Young Toys from Headland Capital Partners for about $200 million in 2015.
The $40 billion PAG Asia recently closed its SCREP VII vehicle at a hard cap of $2.75 billion. The vehicle targets distressed debt and property investments in Japan as well as opportunistic real estate in China, Australia, Korea, and other markets.
Mirae-N is a maker of school textbooks and reference books and also makes investments in the energy and leisure sectors. It is currently eyeing a transformation into the educational entertainment business.
Nvestor, which was established in 2015, is wholly-owned by MiraeN and invests across sectors such as internet/mobile services, gaming, biology, aviation and technology-based businesses.
Corstone Asia looks at middle-market buyouts, mezzanine and middle-market growth equity.