EQT

EQT is pleased to announce that EQT Infrastructure VI (“EQT”) has entered into a definitive agreement to acquire KJ Environment and affiliated companies (collectively the “Platform”) from Genesis Private Equity, an environmental and energy infrastructure specialist, to establish a scaled and diversified end-to-end waste treatment platform focused on plastic recycling and waste-to-energy in South Korea.

The Platform comprises an end-to-end business portfolio in the waste treatment value chain, with core competencies in recyclable waste sorting, plastic recycling and waste-to-energy capabilities. It has strategically located sites in the Greater Seoul Metropolitan Area, serving catchment areas covering more than 50% of the country’s population and its GDP.

The Platform is a leading plastic recycler in South Korea in terms of treated volume, with stable access to high-quality waste plastic feedstock and cutting-edge technology to produce advanced recycled plastics suitable for food and beverage products that involve human contact. As a result, the Platform is well-positioned to advance its leadership in waste treatment with a focus on circular economy infrastructure.

Global demand for recycled plastic is expected to accelerate due to strengthened regulations mandating its use across a myriad of products and applications as well as voluntary commitments in the private sector, most notably in consumer-packaged goods. Sorting plays a particularly critical role in South Korea’s waste treatment value chain as all recyclable waste is aggregated and processed at sites before being transferred to recycling facilities.

The acquisition marks EQT’s second infrastructure investment in South Korea, and is aligned with EQT’s thematic approach to investing in climate-related infrastructure opportunities, supporting resource efficiency and a more circular economy. EQT is committed to working closely with KJ Environment and the affiliated companies to provide both capital and operational support to deepen and expand its customer partnerships, introduce automated machinery and digital solutions, and continue to build trust within the communities it serves.

Sang Jun Suh, Partner in the EQT Infrastructure Advisory Team, commented: “We are delighted to be partnering with KJ Environment and its talented management team. We look forward to applying EQT’s extensive experience investing in sustainable waste and recycling solutions across geographies, combined with our strong local footprint and industrial network, to help KJ Environment elevate into a true market leader in the waste treatment space. This investment also marks EQT’s latest milestone in South Korea, a market we believe holds tremendous potential and is strategically important to our regional investment strategy.”

The Platform adds to EQT’s global portfolio of companies which engage in waste-related business and builds on EQT’s track record of supporting infrastructure companies in the Asia Pacific region. Since 2020, EQT Infrastructure has committed EUR 5 billion of equity, including co-investment, in Asia Pacific companies. The portfolio managed by EQT’s infrastructure team in Asia Pacific employs approximately 11,000 people.

EQT has been investing in South Korea since 2009 and views the market as a key part of the firm’s Asia Pacific strategy across infrastructure, private equity, and real estate investing. EQT Infrastructure looks to support South Korean businesses in achieving their growth and operational objectives by leveraging the expertise of EQT’s global sector teams, in-house expert capabilities within sustainability and digitalization, and global network of Industrial Advisors.

The transaction is subject to customary conditions and approvals. It is expected to close in Q4 2024.

EQT was advised by JP Morgan (financial), Kim & Chang (legal), and PwC (financial and tax).

With this transaction, EQT Infrastructure VI is expected to be 45-50 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on target fund size and subject to customary regulatory approvals.

Contact
EQT Press Office, press@eqtpartners.com

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT Infrastructure VI will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.