LG Electronics To Sell Two Water Treatment Subsidiaries To Techcross

 

Bubang participated in the purchase race for a full stake in LG Electronics’ Hi-Entech and LG-Hitachi Water Solutions, each, against other potential acquirers like Standard Chartered Private Equity (SC PE) and Morgan Stanley PE.

 

Hi-Entech is a company to operate and control water treatment facilities to purify waste water and sewage from plants, and LG-Hitachi Water Solutions is dedicated to constructing and building water treatment facilities.

 

Techcross formed in 2000 is a global leader in the ballast water treatment systems with a market share of 15 percent as for cumulative orders. Ballast water is water carried in ships’ ballast tanks to improve stability and balance, but microorganisms in ballast tanks are blamed for marine pollution. Techcross independently constructed electrolysis technology using electrodes to sanitize microbes in ballast water. Techcross is one of the only two companies in the world that are able to manufacture such electrodes on their own.

 

Techcross intends to enter the land-based water treatment market with the latest acquisition. LG Electronics decided the divestiture to Techcross to guarantee long-term development and job safety in the two subsidiaries, the sources said. Techcross is also planning to go public by selecting KB Securities as a lead manager for its initial public offering (IPO). Techcross published 3.3 billion won in operating profit last year on sales of 77.2 billion won.

 

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