20 August 2024

BDA advises consortium on sale of Halla Encom to E&F PE 

divested stake in

to

2024

BDA Partners is pleased to announce that its clients, Badgers Investment, YJA Investments and HL D&I Halla, have successfully sold their stakes in Halla Encom to E&F PE, a Seoul-based private equity firm, focused on traditional industries such as waste management and construction materials.

BDA was the exclusive financial advisor to the sellers. Terms of the transaction were not disclosed. This is BDA’s fifth transaction in the industrial sector for Korean clients since 2021.

Halla Encom, headquartered in Hwaseong-si, is one of Korea’s largest ready-mix concrete manufacturers, operating 15 manufacturing plants and four aggregate sites across the nation. Following the transaction, E&F PE plans to leverage its expertise in the aggregates sector to carry out additional bolt-on acquisitions of aggregates sites to achieve further growth. Howard Lee, Partner and Head of BDA Partners, Seoul, said, “We’re pleased to have advised our clients in their successful divestment of Halla Encom, successfully navigating a volatile Korean construction sector. The housing market and building industry in Korea have faced strong headwinds since 2022, leading one of Korea’s major construction players to file for debt workout. This transaction represents BDA’s ability to help clients achieve the right result, even under challenging market conditions.”

Deal team

About Badgers Investment

Established in 2017, Badgers Investment is a Korea-based private equity firm engaged in mid-cap buyout and growth investments, led by former executives of Morgan Stanley Private Equity Asia and PAG Asia Capital. Badgers Investment raised its first flagship blind fund in 2022, and is focusing on investments within the mobility sector.

About YJA Investment

Established in 2014, YJA Investment Co Ltd is a South Korea-based private equity firm focused on mid-cap and growth investments. YJA Investment has an extensive track record of investing in new and rising industries such as IT, renewable energy, entertainment, education and biomedical. www.yjai532-001.whoisgh.com/?act=main

 

About HL D&I Halla

HL D&I Halla [KRX:014790] is a leading Korean construction company, under the Halla Group, specialized in fields such as civil engineering, architecture, housing, plants, and environmental businesses. HL D&I Halla is renowned for its high-quality residential brand ‘Halla Vivaldi. www.hldni.com/eng/

 

About Halla Encom

Halla Encom Corporation is a Korean company engaged in the production and sale of ready-mixed concrete, construction materials, and aggregates. Halla Encom operates 15 ready-mix concrete manufacturing facilities, and 4 aggregate sites located across Korea. The company was formerly known as Halla Concrete Corporation.

 

About E&F PE

Established in 2014, E&F Private Equity is a Korean private equity firm engaged in both buy-out and growth capital investments, driving value through unique post-merger integration strategies. Starting with investments in the traditional waste industry, such as landfill and incineration, E&F Private Equity extended its investment scope to encompass related sectors such as renewable energy, resource recycling, and advanced material development. www.enfpe.com/en/

 

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 over 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, Sustainability 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 authorized 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  

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