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[Alpha Biz= Kim Jisun] LG Chem has selected Glenwood Private Equity (PE) as the preferred bidder to acquire its Water Solutions division, with the transaction valued at over KRW 1 trillion and targeted for closing within this year, according to investment banking industry sources on April 28.


The Water Solutions business specializes in manufacturing reverse osmosis (RO) membrane filters, which purify seawater for industrial use. Last year, the division reported approximately KRW 250 billion in revenue, KRW 90 billion in gross profit, and KRW 65 billion in EBITDA. The sale price is reportedly set at a multiple of roughly 20 times EBITDA, placing it slightly over KRW 1 trillion.


The transaction is expected to be structured as a business transfer, with a newly established company by Glenwood PE acquiring the personnel, assets, and patents related to LG Chem’s Water Solutions unit.


An industry insider noted, "Glenwood PE is expected to begin due diligence soon, with the goal of completing the deal by the end of the year."


Glenwood PE's prior experience in the water treatment sector and its strong ties with LG Chem are believed to have contributed to its selection as the preferred bidder. Last year, Glenwood PE acquired Techcross, a company originally founded as LG Group's water treatment subsidiary. In 2023, it also purchased LG Chem's diagnostics business division.

 

 

 

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