Australian private equity fund Macquarie is poised to acquire South Korea’s Daesung Industrial Gases from MBK Partners, local business newspaper Hankuk Business Daily reported on Nov. 3.

Macquarie is set to buy 100 percent in the gas company for about 2.5 trillion won ($2.15 billion), the report said.

The company provides industrial gases to local semiconductor companies with long-term contracts. 

In 2017, MBK Partners, a leading Korean PEF, bought the company with management rights for 1.8 trillion won.

Daesung’s sales were up 5 percent to 566.6 billion won on-year in 2018 and its operating profit rose 27 percent to 93.8 billion won.

The deal is expected to be completed by mid-December after a due diligence process.

If it closes successfully, Macquarie will become the fourth owner of the company in five years.

Daesung was founded as a joint venture between Daesung Industries and Air Liquide, a French company, in 1979. In May 2014, Goldman Sachs Principal Investment Area bought 60 percent stake in the company including 40 percent held by Air Liquide for 420 billion won. Following financial difficulties, Daesung decided to sell the remaining 40 percent in 2017 while Goldman Sachs was seeking to cash in its investment.

Macquarie acquired ADT Caps with SK Telecom last year and seeks to buy a minor stake in LG CNS.

MBK’s most recent notable exits include Woongjin Coway worth 1.68 trillion won.



By Park Ga-young (gypark@heraldcorp.com)