EQT to Acquire Waste Treatment Platform in South Korea

EQT Infrastructure VI ("EQT") has announced that it has reached a definitive agreement to acquire KJ Environment and its affiliated companies (collectively referred to as the "Platform") from Genesis Private Equity. This acquisition aims to establish a robust and diverse waste treatment platform in South Korea, focusing on plastic recycling and waste-to-energy solutions. The Platform boasts a comprehensive business portfolio within the waste treatment value chain, excelling in recyclable waste sorting, plastic recycling, and waste-to-energy processes. Strategically situated in the Greater Seoul Metropolitan Area, the Platform serves regions that encompass over 50% of South Korea’s population and GDP.

As a leading plastic recycler in South Korea, the Platform is recognized for its high-volume treatment capabilities, secure access to premium waste plastic feedstock, and advanced technology for producing recycled plastics suitable for food and beverage applications. This positions the Platform to further its leadership in waste treatment with a focus on circular economy infrastructure.

With global demand for recycled plastics rising due to stricter regulations and industry commitments, sorting remains crucial in South Korea’s waste treatment process. EQT’s acquisition is its second infrastructure investment in South Korea, aligning with its strategy to invest in climate-related infrastructure and promote resource efficiency and circular economies. EQT plans to collaborate closely with KJ Environment to provide capital and operational support, enhance customer partnerships, introduce automation and digital solutions, and build community trust.

Sang Jun Suh, Partner in EQT’s Infrastructure Advisory Team, conveyed enthusiasm about collaborating with KJ Environment and its management team. He highlighted EQT’s intent to leverage its experience in sustainable waste and recycling investments, combined with its local presence and industrial network, to help KJ Environment become a market leader in waste treatment. This investment marks another significant milestone for EQT in South Korea, a market integral to its regional investment strategy.

The Platform's addition to EQT’s global portfolio underscores its commitment to waste-related businesses and builds on its record of supporting infrastructure companies in Asia Pacific. Since 2020, EQT Infrastructure has invested EUR 5 billion in Asia Pacific, with a portfolio employing approximately 11,000 people. EQT has been active in South Korea since 2009 and sees it as a key component of its Asia Pacific strategy across various investment sectors. The transaction, subject to customary conditions and approvals, is anticipated to close in Q4 2024. EQT Infrastructure VI is expected to be 45-50 percent invested upon closing, based on its target fund size and regulatory approvals.