Global SAE-A Acquires Valmax,
Specialist in Hydrogen Refueling Station
Bought 51% stake for KRW 28 billion aiming for synergy
with SAE-A STX ENTECH
Valmax will build up 50 charging stations within this
year
Developed a flow meter with a tolerance of < 5%
They can cover maintenance with a general constructor
license
SAE-A
Trading, one of the largest apparel manufacturers in the world, will acquire
Valmax Technology, a company specializing in hydrogen refueling stations. As
announced on March 14, SAE-A Trading recently signed a contract to acquire a
51% stake in Valmax Technology for KRW 28 billion.
KIM
Il-Hwan, the founder and CEO of Valmax, will maintain his position in the
management with a 15% stake. Remaining 34% stake will be acquired by financial
investors (FIs). SAE-A Trading plans to complete the acquisition process by
filing a report on the merger to the Fair Trade Commission as early as this
week.
Proven Technology on Ultrasonic Flowmeter
Valmax
provides ultrasonic flowmeter with the world’s highest level of accuracy. Kim
started his business in 2002 for a fuel supply system for liquefied natural gas
(LNG) after working at an oil valve manufacturer. The company has mainly
developed LNG fuel supply systems (FGSS), packaged small LNG refueling
facilities, and LNG bunkering (fuel supply) systems for LNG fueled ships.
Valmax’s net sales of Valmax were KRW 42.1B and operating profit was KRW 3.1B
in their 2021 financial year.
Valmax
entered the hydrogen business in 2019. For hydrogen transportation, it is
necessary to produce liquefied hydrogen cooled to a cryogenic temperature of
-253°C, which also covers LNG cryogenic cooling. In particular, the flow meter
developed by Valmax referring to LNG-related measurement and control
technologies has a small deviation when adding hydrogen to a hydrogen vehicle.
It is the only company in Korea that satisfies the tolerance of < 5%
required by the domestic law.
Valmax imports parts such as hydrogen chargers, tanks and
compressors and assembles them as if they were building a plant construction
structure. They also have a general constructor license and can cover
maintenance and repair. Valmax has constructed and is operating hydrogen
refueling stations in five regions including Jeonju, Iksan, and Dangjin.
Stations are newly being built in nine areas including Incheon. The goal is to
build 50 additional stations nationwide as early as this year. “A large-scale
investment is required to occupy an advantageous position in the rapidly
developing hydrogen industry ecosystem,” said Kim. “We are looking forward to
the collaboration between SAE-A’s financial resource and Valmax’s technology.”
M&A Led to Future Growth Engine
Established in 1986, SAE-A Trading is one of the world’s
largest apparel manufacturers that produces yarn (thread), fabric, and finished
apparel products. It produces more than 700 million pieces of knitwear and
jackets annually and sells them to large distribution chains in the US and
Europe. It has affiliates such as Inthef, a clothing company with brands such
as Truegen and Tate.
SAE-A Trading has built up vertical integration in the
apparel manufacturing industry and now is promoting business diversification by
entering various new sectors for risk management and business expansion. By
acquiring Valmax, SAE-A Trading is expecting a synergistic effect with its
affiliate, SAE-A STX ENTECH, a company specializing in plant design and
construction. “We are promoting various new businesses in terms of business
diversification,” said an official from SAE-A Trading.
SAE-A Trading acquired plant business division of STX Heavy
Industries for KRW 18 billion in 2018 and established SAE-A STX ENTECH. In
2019, it acquired Taelim Packaging and Taelim Paper, which are listed on the
Korea Stock Exchange and the No. 1 cardboard manufacturer in Korea for KRW 730
billion. Last year, SAE-A Trading even engaged in a fiercening battle to
acquire Doosan Machine Tools, Taihan Electric Wire, and Alpensia. The sales of
SAE-A’s affiliates were estimated at KRW 3.8 trillion, and the operating profit
at KRW 300 billion in their 2021 financial year.