Bidding Heats Up for Former STX Shipbuilding with US Private Equity

The first round in the process for the potential sale of South Korea’s K Shipbuilding was completed last week, with reports that U.S. private equity investor TPG Group has jumped in as an entrant. The shipyard is reported to be drawing strong interest from investors as it is well-positioned to benefit from Korea’s Make American Shipbuilding Great Again (MASGA) initiative.

K Shipbuilding was relaunched in 2021 after the former STX Offshore & Shipbuilding was acquired by an investment group led by United Asset Management and KHI. The new owners were credited with stabilizing production, lowering costs, and restoring the financially troubled yard on a growth trajectory. In 2024, the yard reported sales of approximately $638 million and produced a profit. As of September, the yard reported it had already booked $560 million or orders for eight ships and options for two additional vessels. It again achieved an operating profit for the first half of 2025.

The investment group launched the sale program, setting November as the deadline for potential bidders to submit letters of intent. Korean media reports said that at least three companies are believed to have already indicated interest in participating in the auction, which will likely take place early next year. Korea’s three largest shipbuilders, Hyundai, Samsung, and Hanwha Ocean, are reported not to be among the bidders.

TPG, which was launched out of the former Texas Pacific Group, reports it currently has $286 billion under management. It is said to be looking at K Shipbuilding as an investment and not seeking management control. TPG joined with Korea’s Taekwang Group, an investment conglomerate with current investments in clothing and apparel, chemicals, real estate, and financial services, in the bid for the shipyard.

Media reports indicate the sellers have set a target price of $340 million or above for the shipyard. They currently hold 99 percent of the sales of the former STX. It is believed they are looking to cash out after the successful rejuvenation of the yard and to realize the future potential from the positioning to be part of MASGA.

K Shipbuilding has previously built warships and is reported to be looking to enter the market for maintenance contracts from the U.S. Navy and for the support fleet. It is highlighted that the yard is also in proximity to the Republic of Korea Navy Fleet Support Unit.

The yard has emerged as the leading mid-sized shipbuilder in Korea. It has booked commercial contracts for ships, including recently two large petrochemical carriers.