Keystone Partners is completing its acquisition of SSP, a semiconductor manufacturing equipment company, by the end of this month. The private equity firm is finalizing the transaction for 100% of SSP's shares, valued at approximately 400 billion KRW, using funds from its fifth and sixth blind funds. This acquisition expands Keystone Partners' portfolio into the semiconductor equipment sector, following recent investments in education platform ClassCard and beauty brand SEMO Company.
Keystone Partners Completes 400 Billion KRW SSP Acquisition
According to investment banking industry sources on the 29th, Keystone Partners will complete the balance payment for 100% of SSP's shares as early as this week, closing the transaction. This comes three months after the company was selected as preferred bidder and signed a memorandum of understanding in April.
The acquisition target includes all SSP shares held by LX Investment and other shareholders, with the transaction valued at approximately 400 billion KRW. Keystone Partners is using remaining dry powder from its fifth blind fund and capital from its new sixth blind fund to finance the acquisition.
Keystone Partners has a track record of successful buyouts and exits across manufacturing, consumer goods, and mobility sectors. The firm achieved over 3x returns on its investment in Orion Technology, a shipbuilding and electronics manufacturer. Its investment in SEAH Mechanics, a secondary battery component company, also recorded high internal rates of return after completing a KOSDAQ listing following internal restructuring.
SSP Holds 60% Market Share in Ball Mount Equipment
SSP holds approximately 60% domestic market share in the semiconductor ball mount equipment sector. Ball mount equipment is critical machinery in semiconductor packaging processes, attaching microscopic solder balls that connect chips to substrates, with high technological barriers to entry.
The company maintains diverse product lines including electromagnetic interference (EMI) shielding equipment, camera module manufacturing equipment, and factory automation (FA) systems. SSP's technological competitiveness in global semiconductor back-end processes is recognized through overseas sales exceeding 60% of total revenue.
SSP's performance shows strong growth trajectory. In 2023, the company recorded revenue of 56.56 billion KRW and operating profit of 20.36 billion KRW, representing year-over-year increases of 38.4% and 58.5% respectively. The operating profit margin reached 36%.
LX Investment Achieves 2x Return on Three-Year Investment
Seller LX Investment is adding a successful exit to its track record through this transaction. The firm reportedly achieved over 2x returns on its initial investment approximately three years after acquisition. LX Investment previously acquired 100% of SSP shares for approximately 180 billion KRW in consortium with M Capital (now MG Capital), with MG Saemaul Geumgo participating as a major limited partner.
LX Investment is the investment affiliate of Taejin International, which owns fashion brand Louis Quatorze, with CEO Kim Chung-won overseeing management.
EY Han Young served as sell-side advisor for the transaction, while Deloitte Anjin (accounting) and Yulchon LLC (legal) provided buy-side advisory services.
FAQ
When will Keystone Partners complete the SSP acquisition?
Keystone Partners will complete the balance payment for 100% of SSP's shares as early as this week, closing the transaction by the end of this month. The company was selected as preferred bidder and signed a memorandum of understanding in April.
What is SSP's market position in semiconductor equipment?
SSP holds approximately 60% domestic market share in the semiconductor ball mount equipment sector. The company recorded revenue of 56.56 billion KRW and operating profit of 20.36 billion KRW in 2023, with overseas sales exceeding 60% of total revenue.
How much return did LX Investment achieve on its SSP investment?
LX Investment reportedly achieved over 2x returns on its initial investment approximately three years after acquiring SSP for approximately 180 billion KRW in consortium with M Capital.
