Yulgok acquisition heats up as bidders crowd in, pushing back final bid deadline

The final bid deadline for the sale of aerospace parts maker Yulgok has been pushed back, as a string of major domestic private equity fund managers joined the race and sellers moved to maximize the competitive momentum.

According to investment banking industry sources, the JKL Partners and WJ Private Equity consortium recently extended the final submission deadline for the Yulgok sale. The deadline had originally been set for May 29, but the sellers pushed it back by about a week to give prospective buyers additional time to clear their internal investment committee schedules. A preferred bidder is expected to be selected as early as mid-June.

Market participants see the extension as a deliberate move to sharpen competition among bidders. By giving candidates enough time to complete their internal reviews and formally enter the process, the sellers appear to be trying to drive up the final price. Five domestic and international private equity fund managers — Stick Investment, Anchor PE, Premier Partners, KCGI and VIG Partners — are currently competing for the acquisition.

With the deadline pushed back, attention is also turning to whether additional bidders may yet enter the fray. More than 10 strategic and financial investors signaled acquisition interest during the preliminary bidding round held in February. Analysts say sustained interest from potential buyers reflects both the growth trajectory of the aerospace industry and Yulgok's own improving earnings.

Founded in 1990, Yulgok is a partner of Korea Aerospace Industries and manufactures and assembles machined components and wing structures for aircraft airframes and engines. Its consolidated sales rose consistently — from 96.9 billion won (about $64.1 million) in 2023 to 117.3 billion won in 2024 and 128.8 billion won in 2025. Operating profit reached 14 billion won this year.

The stake on offer is the 47.09 percent held by the JKL Partners and WJ PE consortium, with Samil PwC serving as the sale adviser. The market currently values Yulgok at roughly 400 billion won on a 100 percent equity basis, and the final transaction price is drawing close attention as bidding enthusiasm builds.

The JKL Partners and WJ PE consortium first acquired a portion of Yulgok's existing shares in 2019, then took on 40 billion won worth of convertible preferred shares in 2020 to become the company's second-largest shareholder. The largest shareholder remains CEO Wi Ho-cheol, who holds a 47.23 percent stake.