5 August 2016
BDA advises Kolon on sale of Kolon Water & Energy to Standard Chartered Private Equity
Divested Kolon Water & Energy to SCPE
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.”
"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."
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
Divested minority stake in In Do Trans Logistics to Mitsubishi Logistics
Divested Doosan Babcock Limited to Altrad
Divested Honour Lane Shipping to Nexus Point
Divested TES to SK ecoplant
Acquired NEC Energy Solutions from NEC Corporation
Raised US$50m in Series B capital and formed a strategic partnership with ANZ
Divested ELEVATE to LRQA
Divested stake in Al Dur Power & Water to Kyushu Electric
Divested 100% to EagleTree Capital
Divested 100% to by Escalent
Divested Hyosung Capital to ST Leaders Private Equity
Acquired EMC Holdings from Affirma Capital
Acquired by The Blackstone Group
Divested equity stake in Xinbang Logistics to HCT Logistics
Divested Yuanyu Radio Advertising to Management / Orient Securities
Acquired Barclay Vouchers in Japan
Acquired majority stake of Realys Group in China
Acquired Lablndia distribution business in India
Divested HCL Asia to the DKSH Group
Divested Phillipines-based subsidiary, Fedders Koppel Inc to KPL Aircon, Inc