2021/09/10

BDA advises LG Energy Solution on the acquisition of NEC Energy Solutions

Acquired NEC Energy Solutions from NEC Corporation

2021

BDA Partners is pleased to announce that its client, LG Energy Solution (“LG ES”), Korea, has acquired 100% of NEC Energy Solutions (“NEC ES”), based in the USA, from NEC Corporation, Japan. The value of the transaction was not disclosed.

BDA Partners was the exclusive financial advisor to LG on the transaction.

NEC ES was established in 2014, by NEC Corporation’s acquisition of the ESS (energy storage solutions) business of A123 Systems, a subsidiary of Wanxiang Group of China. NEC ES has 986 MW of energy storage project experience in North and South America, Europe and Asia. It has grown into the leading global ESS solution provider, offering specialized systems integration for batteries. NEC expanded its energy storage business, especially in the North American market, using its well recognised, highly sophisticated software control suite, “AEROS”.

LG ES is a Korea-based, world-leading lithium-ion battery manufacturer, active in automotive, mobility, IT and ESS batteries. It has clients in power grids, UPS, and the commercial and residential sectors. LG ES will use the acquisition as a foothold to expand its ESS business in the North American market, and further strengthen its market-leading position in the ESS market globally. Moreover, through this transaction, LG ES plans to become the leading one-stop ESS solution provider, offering the full range of ESS services, from the installation of battery storage to full system solutions. These batteries and solutions are innovative, energy efficient, and environmentally friendly.

Howard Lee, Partner and Head of Seoul at BDA Partners, commented: “We’re lucky to play a key role in this transaction whereby conglomerates from two countries, Korea and Japan, have come together to progress an important ESG theme, in the ESS sector. We believe BDA will continue to add great value for clients are seeking cross-border growth opportunities, across Asia and beyond.”

About LG Energy Solution

LG Energy Solution is a global leader delivering advanced lithium-ion batteries for Electric Vehicles (EV), Mobility & IT applications, and Energy Storage Systems (ESS). LG Energy Solution was the fast-growing battery division of LG Chem, carved out in 2020. It is uniquely well positioned for the future eco-friendly energy industry, developing differentiated materials and next-generation batteries. As the only chemical-based battery company in the world, LG Energy Solution leads the global lithium-ion battery market, based on its materials technology, global production capacity, and promising R&D and investment roadmap. LG Energy Solution’s technology has been approved by over 20 global car makers including Ford, GM, and Volkswagen. Today, more than 4.5 million electric vehicles are powered by LG Energy Solution’s batteries. www.lgensol.com/en

About NEC Energy Solutions

NEC ES is based in Westborough, Mass, USA. It was formed by NEC Corporation’s acquisition of the ESS business from A123 Systems in 2014, offers component cells, lead acid replacement batteries, and grid storage solutions. The company’s products are used for telecoms, IT backup, datacenter, medical, lead-acid replacement, security systems, electric mobility, UPS systems, and other industrial applications in North and South America, the EMEA region, and Asia-Pacific. www.neces.com

About NEC Corporation

NEC Corporation is a $28bn revenues Japanese multinational information technology and electronics leader, established in 1898 and headquartered in Minato, Tokyo. Before rebranding in 1982, the company was known as the Nippon Electric Company, Limited. NEC provides IT and network solutions, including cloud computing, AI, IoT platform, and telecommunications equipment and software to business enterprises, communications services providers, and government agencies. Despite being one of the largest PC and semiconductor manufacturers through the 1900s, NEC has largely withdrawn from manufacturing since the beginning of the 21st century, to focus on information technology. www.nec.com

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 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.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com