3 September 2020

BDA advises SK Group on acquisition of EMC Holdings from Affirma Capital

Agreed to acquire 100% of EMC Holdings from Affirma Capital

2020

BDA Partners is pleased to announce that its client, SK E&C (“SK”), has agreed to acquire 100% of EMC Holdings (“EMC”) from Affirma Capital, formerly known as Standard Chartered Private Equity. The value of the transaction is not disclosed.

EMC is the premier environmental services provider in Korea, with a portfolio of market-leading businesses in water treatment, incineration, landfill and waste oil refining. EMC is the biggest domestic water treatment O&M service provider in Korea, with 23 years’ operating history at approximately 1,000 sites nationwide. EMC operates four incineration facilities and one landfill site. Affirma acquired Kolon Water & Energy, now renamed EMC, in 2016. Since then, EMC has expanded from water treatment into integrated environmental services. EMC has solidified its position as the leading industry consolidator.

BDA Partners was the exclusive financial advisor to SK E&C on the transaction.

SK Group expects to create synergies, using EMC to treat waste produced by SK Group’s oil refining and chemical units: SK Innovation, SK Chemicals, and SK Incheon Petrochem.

SK E&C stated, “We made every effort to acquire EMC to develop our environmentally-friendly business, to create both economic and social value. We will seek to expand into foreign markets, using our overseas plants.”

Charlie Maynard, Senior Managing Director and Co-founder of BDA Partners, commented, “We advised on the sale of Kolon Water & Energy in 2016. We’ve witnessed Affirma Capital successfully developing the business from a pure water treatment services provider through a number of acquisitions into an integrated environmental services platform. We’re delighted to play a role in the latest step of this journey, by advising SK Group on the purchase of EMC. SK Group is well placed to grow the business further in the future.”

Howard Lee, Managing Director and Head of Seoul at BDA Partners, commented, “BDA has made a meaningful leap forward with SK Group’s acquisition of EMC. In addition, it is personally meaningful as my third transaction with SK Group, after SK Telecom’s acquisition of Hynix for US$2.8bn in 2011, and SK E&S’ sale of its LNG-Coal power plants for US$1bn in 2014.”

About SK E&C

Established in 1962, SK Engineering & Construction (“SK E&C”) is one of the top construction companies in Korea, providing engineering and constructions services as the construction arm of the SK Group, a major conglomerate in Korea. SK E&C has successfully delivered on construction projects in Korea and abroad, ranging from construction of civil infrastructure to water and environmental facilities, refineries, petrochemical plants, and power generation plants. Based on its proven track record, SK E&C has gained an international reputation for its construction capability and is seeking to strategically expand business opportunities in environment-related construction projects through recent acquisition of EMC Holdings, one of the top waste treatment companies in Korea. skec.com

About EMC Holdings

EMC Holdings is a leading integrated environmental services platform in Korea, established in 2016 as a holding company for major waste treatment companies under Affirma Capital’s bolt-on acquisition scheme. EMC has operational capabilities across the entire environmental services value chain in various waste treatment sectors, including industrial waste treatment, wastewater treatment, and waste-oil treatment via its large-scale incineration, landfill, and wastewater treatment facilities across the nation. EMC is the top wastewater treatment service provider in Korea, delivering on its wastewater treatment contracts with up to 78 municipalities in more than 970 sites nationwide. emc-env.com

About Affirma Capital

Affirma Capital (“Affirma”) is a global private equity firm headquartered in Singapore with offices in Africa, UAE, Hong Kong, India, South Korea and China. The firm invests in balance sheet restructuring, expansion and growth capital, acquisitions or management buyouts, and mezzanine. Affirma manages over US$3.6bn in assets for leading global limited partners and sovereign wealth funds. Throughout its 18 year history of investing in emerging markets, Affirma has deployed over US$5.5bn in 90+ companies across Asia, Africa and the Middle East, driven by Affirma’s strong senior leadership spent over 10 years working together at SCPE prior to founding Affirma Capital. affirmacapital.com

About BDA

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets. bdapartners.com