Key Takeaways

• In September 2026, 100% of S&S Valve, a Jinju-based manufacturer of cryogenic valves for LNG carriers, was sold to a consortium of Duksan Neolux and Mirae Asset Venture Investment. The acquisition was agreed in May 2026 at a purchase price of approximately KRW 150bn, with Samjong KPMG acting as sell-side adviser.
• The owner chose a sale over family succession. He judged that, under individual ownership, the company could not expand beyond shipbuilding into nuclear and plant applications.
• The key was a structure in which a financial investor led the transaction and a strategic investor joined the consortium. It preserved both strict confidentiality and the trust of conservative customers.

What S&S Valve does

S&S Valve, based in Jinju, South Gyeongsang Province, is a marine-equipment company with world-leading competitiveness in cryogenic valves for LNG carriers, which handle liquefied gas at temperatures below minus 160°C. Founded in 1979, it has earned the trust of Korean and international shipyards and global shipowners through its long track record and technology. Since the early 2000s it has supplied cryogenic valves to more than 400 LNG carriers in Korea and abroad, and equity analysts rate it the leading Korean maker of cryogenic valves for LNG and shipbuilding.

On rising demand for eco-friendly vessels, revenue grew from KRW 83.8bn in 2023 to KRW 143.5bn in 2025, an increase of more than 70% in two years, and operating profit reached KRW 20.4bn in 2025.

Why the owner chose a sale over succession

With retirement approaching, succession had become a practical question. Family succession was considered, but two issues stood in the way.

• The shipbuilding cycle: The LNG-carrier market is led by Korea's three major shipbuilders and Chinese yards, and orders are stable, but shipbuilding cannot escape the economic cycle. The company needed to expand into nuclear and plant applications.
• The limits of individual ownership: Its technology was already recognized in nuclear and plant markets, but a small company led by an individual shareholder could not commercialize it quickly.

How to weigh succession against a sale is set out in Understanding M&A: Succession and Owner Exit.

Even a world-leading niche company cannot avoid the question of the owner's retirement. This transaction answered it with growth into new markets.

Why a consortium of a financial and a strategic investor

What is the difference between a strategic and a financial investor?

A strategic investor (SI) is a company that acquires for business synergies. A financial investor (FI) is an investor such as a private equity fund or venture capital firm that acquires for investment returns.

This transaction had two requirements that pulled in opposite directions.

• Strict confidentiality: The company had changed hands before, and employees were weary of it. If the deal failed, the company would have to return immediately to succession planning, so it was essential that the review of a sale did not become known outside. On this point, a financial investor able to run the process privately had the advantage.
• Customer trust: Shipyards and shipowners are careful in choosing suppliers. They preferred a strategic investor that would run the company for the long term over a financial investor that would exit after a set period.

Samjong KPMG M&A Center designed a structure in which a financial investor with a deep understanding of the deal led the transaction and a strategic investor with clear business synergies joined as consortium partner. The buyer set out from the start a growth plan to extend the company's valve technology into nuclear and plant applications, and discussions between the parties moved smoothly from the early stages.

Duksan Neolux, the strategic investor, acquired Hyundai Heavy Industries Turbomachinery, a maker of pumps and compressors for LNG carriers, in 2025. Pumps and valves go into the same LNG carriers and storage facilities and share a customer base, so joint sales can be expected after the acquisition.

By having a financial investor that understood the deal build a consortium with a strategic investor, the structure protected both confidentiality and customer trust.

How the timing of the sale was decided

The company had grown rapidly over the past three years and had just completed a new company-owned plant, giving it a base for the next phase of growth. Global customers and competitors alike viewed its prospects positively. Running the sale at the point when growth was expected to continue translated into a high valuation.

Three lessons for owners considering a sale

1. Sell before growth peaks, once the base for the next stage of growth is in place.
2. Design the post-acquisition growth plan and the right buyer for it first. Only by setting out the company's strengths, areas for improvement and limits can you identify the right buyer.
3. When choosing an adviser, first confirm they can keep the deal confidential through to closing. Sales of smaller companies often run privately over several months, and each stage needs careful handling. (Understanding M&A: Sale Process and Confidentiality)

Which companies does this case apply to?

Companies close to the following profile may consider a consortium sale combining a financial and a strategic investor.

• Sector: Manufacturers of core components and equipment in cyclical industries such as shipbuilding, energy and plant (for example, marine-equipment companies in Busan and South Gyeongsang)
• Size and technology: Revenue of around KRW 100bn, with technology recognized by key customers such as shipyards and shipowners and the potential to expand into other industries
• Owner situation: An owner approaching retirement for whom passing the company to the next generation is difficult, or who feels individual ownership limits expansion into new businesses
• Deal conditions: Cases where news that a sale is being considered would strain relationships with employees and customers, so the process must remain private

Conversely, where no strategic investor is clearly placed to scale the company's technology, a standalone acquisition by a financial investor followed by growth support is also worth considering.

Samjong KPMG M&A Center advises owners of small and mid-sized companies who, like S&S Valve, are considering a sale instead of succession.

Frequently Asked Questions

Q. Who acquired S&S Valve, and at what price?

A consortium of Duksan Neolux and Mirae Asset Venture Investment acquired 100% of the company for approximately KRW 150bn, and the transaction closed in September 2026. Samjong KPMG M&A Center acted as sell-side adviser.

Q. What options does an owner have when family succession is difficult?

One option is to sell control to a strategic or financial investor that can grow the company. A consortium combining both, as in this case, is another. A management buyout (MBO), in which the existing management team acquires the company together with a financial investor, is also possible.

Q. How is confidentiality maintained while a sale is being considered?

Confidentiality is the first principle in designing a sale process. In practice, the following measures minimize information leakage.

• Project code name: A code name is used in place of the company's name in internal reporting and external discussions.
• Anonymous teaser: A summary with all identifying information removed is used to gauge buyer interest first.
• Non-disclosure agreement (NDA): The detailed information memorandum (IM) is provided only after interested parties have signed an NDA. The scope of disclosure widens step by step as the process advances.
• Virtual data room (VDR): Due-diligence materials are opened only to vetted bidders, and every access is logged.
• Sale method: An open auction with many bidders carries a high risk of leakage. Balancing confidentiality against competition, we generally recommend a limited auction among a small number of selected bidders.

A company sale usually proceeds in four stages, preparation, investor marketing and preliminary due diligence, confirmatory due diligence and signing, and closing, and typically takes six to ten months.

Q. In a control sale, is a private equity fund or a strategic investor the better fit?

A private equity fund (FI) grows a company in order to sell it at a higher value, usually within three to five years, and often invests in people, systems and new businesses after the acquisition. A strategic investor (SI) is a company that acquires control for business synergies. Which is the better fit depends on what the company needs to protect. For S&S Valve, both confidentiality during the process and customer trust mattered, so the structure chosen had a financial investor lead the deal with a strategic investor in the consortium.

Deal Professional