BDA advises Kolon on sale of Kolon Water & Energy to Standard Chartered Private Equity

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.”