Curocom, a holding company of Curo Group, acquired a plant equipment maker Daekyung Machinery & Engineering from its affiliated private equity firm Q Capital Partners.
According to industry sources on July 5, Curocom paid 26 billion won to its affiliate private equity firm Q Capital Partners in return for the acquisition of a 40.78-percent stake in Daekyung Machinery.
Sources close to the situation said, "In a situation where the sale of Daekyung Machinery has been delayed as the talks with a handful of large companies ended in a failure, the parent company finally decided to undertake the sale for itself."
Curocom plans to incorporate Daekyung as its subsidiary and launch a normalization process. Q Capital acquired the machinery maker back in 2007. Together with Taihan Electric Wire, Q Capital acquired Daekyung Machinery from its creditors for 220 billion won.
The financial performance of Daekyung Machinery, however, has deteriorated since the global financial crisis, with its sales falling to 191.3 billion won last year from 228.7 billion won in 2007. During the same period, the company also slipped into an operating loss of 11.5 billion won last year in a turnaround from a 17.2-billion-won profit.