BDA Partners is pleased to announce that its client, Kolon Corporation (“Kolon”), has completed the divestment of its 62.6% stake in Kolon Water & Energy (“KWE”), the largest private wastewater treatment operations and maintenance service provider in Korea, for US$81m (KRW89bn), to Standard Chartered Private Equity (“SCPE”), an existing shareholder of KWE. In a related transaction, Kolon also agreed to purchase 35% of Kolon Energy (“KE”), a subsidiary of KWE previously held by SCPE, for US$21m (KRW23bn). BDA acted as exclusive financial advisor to Kolon.
KWE, in operation since 1997, operates and manages waste water treatment plants in Korea. KWE has managed over 200 wastewater treatment sites since inception and is the market leader in the sewage and industrial wastewater treatment markets, with 32% and 26% market share, respectively. Following a strategic review, Kolon decided to exit its wastewater activities, appointing BDA to approach potential buyers.
BDA’s international access to buyers provided Kolon with a variety of exit options. Kolon ultimately decided to proceed with SCPE, which had made significant minority investments into KWE and KE in 2009, to ensure an expedited due diligence process.
Howard Lee, Managing Director and Head of BDA Seoul, said “This transaction is an excellent example of BDA’s international strength. BDA’s global platform enabled us to attract a range of buyers, thereby increasing the alternatives and likelihood of success for our client.”
Charles Maynard, Co-founder and Senior Managing Director of BDA, said “Howard and his team have done a terrific job and achieved an excellent result for Kolon in a short period of time. BDA’s sector knowledge and access to buyers across the world has again proved to be key differentiators in the Korean market.”
BDA Deal Team
Howard Lee, Managing Director, Seoul
Ryan Jung, Director, Seoul
Shan Yue, Senior Advisor, Beijing
Seungmin Lee, Associate, Seoul
Yougyeong Kwon, Associate, Seoul
Jennifer Lee, Analyst, Hong Kong
For more information, please contact Howard Lee in Seoul at firstname.lastname@example.org.
About Kolon Corporation
Kolon Corporation is a Korea-based holding company mainly engaged in the subsidiary management, Kolon brand royalty, real estate sales and leasing, and market research and management consulting businesses. The Company’s subsidiaries include Kolon Industries Inc, engaged in the yarns, tire cords, polyester films, nylon film, resins and fashion businesses; Kolon Water & Energy Co Ltd, engaged in the operation and management of waste treatment facilities; Kolon Benit, engaged in the development and provision of system software; Kolon Global Corporation, engaged in the construction business, imported cars distribution business, information technology (IT) business and others, and NeoviewKolon Co Ltd, engaged in the manufacture of organic light emitting diodes (OLEDs). www.kolonindustries.com
About Standard Chartered Private Equity
SCPE is the private equity arm of Standard Chartered Bank. SCPE invests in companies in need of expansion capital or acquisition finance, and in management buy-outs. SCPE focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East. It is an active partner that provides board-level strategic advice and access to the international network of Standard Chartered Bank, and since inception has invested about US$6bn in over 100 companies across the bank’s footprint. www.sc.com