Dongwon Systems acquires packaging firm for W250 billion

Wednesday, Aug 13, 2014

Dongwon Systems, a packaging subsidiary of Dongwon Group, has acquired Techpack Solutions from MBK Partners, a private equity fund, for 250 billion won ($242.8 million).

Techpack is one of the nation's largest packaging companies.

The takeover of the company reflects Dongwon's commitment to beefing up its packaging business, the company said.

"Dongwon Systems will make packaging one of the three core businesses of Dongwon Group," said Dongwon Systems CEO Cho Jum-kun in a statement.

Techpack, launched in 1956, mainly focuses on containers for beverages. The packaging company was once an affiliate of Doosan Group until 2008. It was sold to the fund when Doosan sold affiliates as part of a reorganization of its business.

Techpack posted 350 billion won in sales last year and 21 billion won in operating profit.

Dongwon Systems has been expanding its packaging business through mergers and acquisitions over the past few years.

The packaging company tapped into the aluminum processing business by acquiring Daihan Eunpakgy in May 2012. In January, it also acquired Hanjin P&C, a multilayer film maker for packaging.



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