Swedish investment firm EQT said on Friday it has agreed to acquire KJ Environment and affiliated companies from Seoul-based investment firm Genesis Private Equity to establish a waste treatment platform in South Korea.
EQT said it is making the acquisition via its sixth infrastructure fund.
The deal would give the platform, which will focus on plastic recycling and waste-to-energy in South Korea, an enterprise value of over 1 trillion won ($733 million), said two people with knowledge of the matter, who declined to be named as the information was not public.
EQT declined to comment on financial details of the transaction.
A representative for Genesis, a buyout firm specialising in environmental and energy infrastructure in South Korea, declined to comment.
The deal, EQT’s second infrastructure investment in South Korea, comes as global demand for recycled plastic is expected to accelerate due to strengthened regulations as well as voluntary commitments by companies in the private sector, EQT said.
The platform comprises an end-to-end business portfolio in the waste treatment value chain, including recyclable waste sorting, plastic recycling and waste-to-energy capabilities, EQT said.
It has strategically located sites in the Greater Seoul Metropolitan Area, serving catchment areas covering more than 50% of South Korea’s population, the investment firm said.
Since 2020, EQT Infrastructure has committed 5 billion euros of equity, including co-investment, in Asia Pacific companies, it said.
EQT set a target size of 20 billion euros in August 2022 for EQT Infrastructure Fund VI. It has not disclosed whether the fundraising has been completed.
The transaction is expected to close in the fourth quarter this year, EQT said.
JPMorgan advised the firm on the deal, it said.
Reuters