Hanwha Ocean 'M&A Model Case'... Growth Over 100% After Acquisition

[Financial News] Hanwha Ocean has recorded the most outstanding management performance among large corporate mergers and acquisitions (M&A) companies over the past 10 years. It showed a growth rate exceeding 100% in all indicators, and sales increased by more than 140%.
On the 22nd, Leaders Index evaluated the performance of 20 companies acquired by the top 30 groups since 2015 in terms of shareholder value, and found that total sales increased by 40.3% from 33.955 trillion won two years before acquisition to 47.6249 trillion won two years after acquisition. Net income also turned positive from -2.41 trillion won to 1.4455 trillion won during the same period. Overall, the management performance improved after being acquired by large corporate groups.
Equity capital increased by 39.8% from 20.3641 trillion won to 28.4644 trillion won. The return on equity (ROE) also achieved a surplus, rising from -11.8% to 5.1%. The market capitalization of 11 listed companies increased by 38.9% from 21.5858 trillion won to 29.9741 trillion won.
In particular, Hanwha Ocean showed a growth rate of over 100% in all indicators. Hanwha Ocean's sales increased by 140.2% from 4.4866 trillion won two years before acquisition to 10.776 trillion won two years after acquisition. Market capitalization surged from 2.473 trillion won to 11.4445 trillion won.
Hanwha Ocean is also performing well. Having successfully turned a profit last year, Hanwha Ocean recorded an operating loss of 9.6 billion won in the second quarter of last year due to one-time expenses. This year, with such factors disappearing, it is expected to record a profit. According to financial information company FnGuide, Hanwha Ocean is estimated to achieve sales of 3.2188 trillion won and an operating profit of 253.3 billion won in the second quarter of this year.
The company with the highest sales and equity capital growth rate is the autonomous driving startup 42dot, acquired by Hyundai Motor Group in 2022. Sales increased 1600 times from 25.06 million won two years before acquisition to 40.7 billion won two years after acquisition, and equity capital also grew about 10 times from 24.6 billion won to 271 billion won.
The number one in market capitalization growth rate is Pan Ocean (formerly STX Pan Ocean), acquired by Harim Group in 2015, with market capitalization soaring 1257.6% from 156.8 billion won to 2.1295 trillion won.
The largest M&A case in terms of amount over the past 10 years is SK Group's acquisition of the NAND business unit (now Solidigm) from Intel for 10.3 trillion won in 2020. It was followed by Samsung Electronics' acquisition of Harman for 9.3 trillion won in 2017.
hoya0222@fnnews.com Kim Dong-ho Reporter