BDA Partners is pleased to announce that its client, Doosan Engineering & Construction Co Ltd (“Doosan E&C”), a leading Korean construction company, has agreed to sell its heat recovery steam generator business, Doosan E&C HRSG, for KRW300bn (US$260m) to GE Power, a division of GE and a world leader in power generation equipment. BDA acted as exclusive financial advisor to Doosan E&C.
The transaction is subject to approval by regulators and Doosan shareholders.
In operation since 1977, Doosan E&C HRSG is a leading player in the industry. It operates three advanced manufacturing facilities, one in Korea and two in Vietnam, specializing in engineering, project management, and manufacturing HRSGs. Doosan has been a long term supplier to GE and other industry leaders, and was a licensee of Alstom technology until 2007.
GE Power recently acquired Alstom to offer full power plant solutions. The addition of Doosan E&C HRSG will strengthen GE’s position in the global combined cycle power plant market, bringing engineering capabilities, production capacity, and cost effective, vertically integrated manufacturing. It will complement GE’s existing HRSG technology, and help GE deliver a more effective solution to customers.
Charles Maynard, Senior Managing Director at BDA, said “we’re delighted to have helped Doosan execute this landmark transaction.”
Howard Lee, Managing Director and Head of BDA Seoul, said “the BDA Seoul team is pleased to announce this significant M&A transaction, between globally competitive players. It reinforces BDA’s strong record in the industrial sector, our preeminent position helping Korean companies internationally, and our credentials with the biggest and best multinationals.”
BDA Deal Team
Howard Lee, Managing Director, Seoul
Ryan Jung, Director, Seoul
Yougyeong Kwon, Associate, Seoul
Seungmin Lee, Associate, Seoul
About Doosan E&C / Doosan E&C HRSG
Doosan E&C is a leading Korean construction company, with remarkable achievements in the fields of civil works, architecture and plant equipment. Doosan E&C HRSG manufactures and distributes HRSGs to combined cycle power plants at home and abroad. The division has successfully installed and operated HRSGs not only for domestic combined cycle power plants in Boryeong, Busan and Incheon, but also for combined cycle power plants around the world, including Europe, Asia and Africa. www.doosanenc.com
About GE / GE Power
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store,” through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across GE’s industrial sectors. GE Power is a world leader in power generation and water technologies for utilities, independent power producers and industrial applications. Headquartered in Schenectady, New York, GE Power is GE’s largest industrial business, with more than $27bn in revenue in 2014 and 38,000 employees serving customers in more than 125 countries. www.ge.com
BDA Partners is a leader in cross-border investment banking involving Asia. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe, and Asia. BDA is headquartered in New York with offices in London, Dubai, Mumbai, Ho Chi Minh City, Hong Kong, Shanghai, Beijing, Seoul, and Tokyo. BDA was named M&A Advisory Firm of the Year at The ACG Champions Awards in 2015. BDA formed a partnership with William Blair & Company in 2011. www.bdapartners.com
BDA carries out its US securities business through BDA Advisors Inc, a broker-dealer registered with the US Securities and Exchange Commission (SEC) and a member of FINRA and SIPC. BDA’s UK subsidiary is authorised and regulated by the Financial Conduct Authority. BDA’s HK subsidiary is licensed and regulated by the Securities & Futures Commission.