Busan-based ballast water treatment system company Techcross bought the entire stake in both LG conglomerate’s land-based water treatment units LG-Hitachi Water Solutions and HiEntech for an undisclosed amount on Sept. 26.
The two companies were reportedly valued at roughly over a combined 250 billion won ($208.5 million). Techcross declined to comment.
Ready, set, binge: LG looks to change course with M&As
The acquisition was closed months after Techcross signed a sales and purchase agreement withLG Electronics in July. Before the sale, LG Electronics owned a 51 percent stake in LG-Hitachi Water Solutions, a joint venture that makes equipment for land-based water treatment, as well as a 100 percent stake in sewage treatment operations HiEntech.
LG-Hitachi Water Solutions and HiEntech will be renamed as Techcross Water & Energy and Techcross Environmental Services, respectively, according to the company.
This came as part of LG Electronics’ reorganization and sale of the noncore business. It announced the sale of its water treatment operations in March.
Founded in 2000, Techcross is devoted to its electrolysis technologies to treat invasive marine species in ballast water.
Techcross said its original technology for water treatment would allow it to create synergies with the newly acquired companies.
“(LG-Hitachi and HiEntech) have potential to increase sales by increasing external orders,” said Techcross CEO Wayne Park. “Based on the capital and know-how of (Techcross, LG-Hitachi and HiEntech) accumulated in the growth process, Techcross has a goal to grow into a unique environmental company.”
Techcross is considered a part of textile-to-electronics Bubang Group, although it does not own Techcross shares. Its owner family, however, is Techcross‘ largest shareholder. Bubang Chairman Lee Dong-gun owns 14.53 percent of common shares, and his second son Lee Joong-hee holds 40.71 percent of voting rights.
By Son Ji-hyoung (firstname.lastname@example.org)