Accounting advisory for H&Q's acquisition of SK Specialty

PwC Korea provided accounting advisory services in connection with Hahn & Company’s acquisition of an 85% controlling interest in SK Specialty. Valued at KRW 2.6 trillion, the transaction involved complex relationships with multiple SK Group companies across personnel, research facilities, equipment, raw material procurement and product supply. As a result, it was a highly challenging equity buyout with significant carve-out characteristics and a requirement for the business to operate independently following closing.

PwC Korea closely reviewed related-party agreements and their impact on earnings, developed proposed adjustments to pro forma EBITDA on a standalone basis, and supported the negotiation process and incorporation of the agreed adjustments into the SPA. The team also analyzed individual roles and responsibilities to identify essential employees to be transferred and estimate standalone costs, while reviewing joint research and development activities and existing intra-group commercial relationships to help establish an operating model capable of functioning independently after closing.

Given the limited public information and complexity of the specialty gas business, PwC Korea systematically analyzed the company’s long-term financial performance, semiconductor demand and competitive dynamics, raw material and production costs, facilities and inventory, and the impact of yield improvements. Despite a demanding timetable and numerous stakeholders, the team supported due diligence, negotiations and post-closing settlement, contributing to SPA signing within approximately four months of the start of due diligence and closing within approximately seven months.