Last month, SK Ecoplant, which decided to invest 3 trillion won in the company name with the change of name, took the first meaningful step toward becoming Asia’s leading environmental company by acquiring four waste treatment companies.
SK Ecoplant announced on the 3rd that it had signed a stock purchase agreement (SPA) to acquire four companies, including Clenco, Daewon Green Energy, Saehan Environment, and DDS, in accordance with the resolution of the board of directors. Under this contract, approximately 400 billion won of funds will be invested to acquire all stocks (100% stake) of each company. In the future, the final acquisition amount will be determined through a process of adjusting the transaction price, and SK Ecoplant plans to secure the acquisition price by using the funds held and the acquisition finance. When the acquisition is completed, it is expected to emerge as the largest comprehensive environmental company in Korea in name and reality.
Using the environmental facility management (formerly EMC Holdings) acquired last year as an anchor, SK Ecoplant acquired four waste incineration companies in the Chungcheong area according to the bolt-on strategy. did. Through this acquisition, the company has provided an opportunity to further accelerate the transformation of its portfolio centered on environmental businesses by leaping to become Korea’s No. SK Ecoplant plans to advance and advance waste treatment by utilizing the core competencies accumulated in the construction industry, the know-how of acquiring companies and eco-friendly new technologies, and establishing a win-win cooperation model with the local community.
Clenco is a company specializing in waste incineration and steam production and supply using waste heat in Cheongju, North Chungcheong Province. It has 3 incinerators and has a daily processing capacity of 352 tons. SK Ecoplant will acquire all of its shares, including a 60% stake held by Macquarie Asset Management.
Daewon Green Energy is a waste incineration and waste heat power generation company located in Cheonan, Chungcheongnam-do. It has one incinerator and has a daily processing capacity of 72 tons. Daewon Hi-Tech, an intermediate disposal company for construction waste in the same area, is a 100% subsidiary. It will acquire 100% of the stake held by E&F PE.
Saehan Environment is a waste incineration company located in Cheonan, Chungcheongnam-do, like Daewon Green Energy. It has a processing capacity of 96 tons per day through two incinerators. ENF PE and IS Dongseo will acquire 100% of the shares jointly held.
DDS is a medical waste incineration company located in Nonsan, Chungcheongnam-do, and expanded its treatment capacity from 9.8 tons per day to 36 tons earlier this year. Medical waste incineration is one of the fields with high entry barriers as only designated companies can handle it. The acquisition is significant in that it has diversified its environmental business portfolio by securing not only industrial waste but also medical waste incinerators. SK Ecoplant will take over all of the shares, including the shares held by the CEO, including the 87.25% stake held by the Korea Development Bank’s PE (Private Equity) Office and Eugene PE.
SK Ecoplant will invest a total of 3 trillion won by 2023 to develop new eco-friendly businesses and continuously pursue M&As with technologically innovative companies. We plan to realize a circular economy through eco-friendly and new energy businesses, establish a value chain in Asian base countries based on domestic business, and expand business areas throughout Asia.
Ahn Jae-hyun, president of SK Ecoplant, said, “This acquisition provides an important opportunity to expand our portfolio centered on environmental businesses in earnest. ” he said.
Author/ Translator: Jamie Kim
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