South Korean private equity house Hahn & Co has agreed to acquire SK Chemicals’ biofuel business for 382.5 billion won ($322.2 million) in a cash transaction.
The sale of the business, which makes biodiesel and bio-heavy oil, is expected to boost management efficiency of SK Chemicals and enable it to focus on investment for future growth engines of eco-friendly materials and life science, the company said.
The acquisition is slated for completion on May 31 if SK Chemical shareholders approve the transaction in its extraordinary meeting next month.
SK Chemicals reportedly occupied a third of biodiesel market share by the end of 2018. Biodiesel was said to account for around 20 per cent of the company’s annual revenue in the year.
SK Chemicals is present in bio-materials, composites, high-performance materials, energy-saving materials and life science businesses.
This is the fourth SK Group unit that Hahn & Co has acquired following the most recent $3.7-billion acquisition of SK Shipping, used car retailer SK Encar and SK D&D, a real estate and renewable energy developer.
Founded in 2010 by former Morgan Stanley and Sony Korea executives, the private equity firm manages over $6 billion of assets. The buyout firm closed a $3.2-billion fundraise for its third Korea investment fund and a co-investment vehicle in 2019.
By Nguyen Thi Bich Ngoc
Source: Deal Street Asia
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
