Korean private equity firm VIG Partners said on Jan. 3 it had acquired Youyoung Industries, a local sneaker material maker for Nike and other global sportswear brands, for 220 billion won (US$206 million).
The acquisition was made through a special purpose company funded jointly by VIG and Youyoung’s founder and CEO Jung Ho-tae.
VIG said Jung, the second-largest shareholder in the new entity, will remain in the management team. Kim Beom-joon, a former executive at Korean telecom carrier KT, was appointed CEO.
Currently, Youyoung’s clients include Nike, Adidas, New Balance, Under Amour and Puma. In 2015, the firm developed an advanced sneaker fabric, called Circular Knit Jacquard, with Nike.
The firm’s revenue and operating profit last year are estimated at 84 billion won and 20 billion won, respectively.
By Lee Ji-yoon (firstname.lastname@example.org