Amid continued scrutiny of private equity funds’ (PEF) corporate management approaches after the Homeplus case, a debate has emerged regarding the restructuring at Osstem Implant, which was purchased by MBK Partners.
As reported by the investment banking (IB) sector on the 20th, Osstem Implant has been recently implementing a staff restructuring process that affects certain employees, including ending their current positions or removing them from their roles, requiring them to seek new opportunities independently.
Although the precise number of impacted employees remains undisclosed, it has been mentioned that certain staff members are either undergoing training at different organizations or are awaiting new positions.
Employees allege that, following last year’s extensive organizational changes under the guise of improving workforce efficiency, the company is now introducing new restructuring efforts that essentially encourage employees to quit. The debate has intensified after it was disclosed that this round of affected employees includes pregnant women and those who are returning from parental leave.
Some workers have also raised worries that MBK Partners, concentrating on reducing expenses to accelerate the return of their investment, might be implementing a management style akin to what was observed in the Homeplus situation.
In 2023, Osstem Implant was purchased by a group headed by MBK Partners and UCK Partners, who injected around 2.5 trillion South Korean won to obtain a 96.1% ownership. The company’s combined operating profit dropped to 80 billion South Korean won last year, which is half of the 160 billion South Korean won recorded in the previous year. Meanwhile, dividend distributions increased to 100.1 billion South Korean won last year and 39.2 billion South Korean won in March this year, much higher than the pre-acquisition figures of 8.6 billion South Korean won in 2021 and 3.2 billion South Korean won in 2022.
In response to the controversy, MBK Partners mentioned, “MBK is only a shareholder of Osstem Implant, and the issue at hand is a decision made by the company’s leadership, which MBK does not directly participate in.”
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