SK Ecoplant Acquires Four Waste Management Companies Worth 400 Billion KRW

Signed Share Purchase Agreement (SPA) for Acquisition of Clenco, Daewon Green Energy, and Others
Investing Approximately KRW 400 Billion to Acquire All Shares of Each Company
"Stepping Up as the Largest Comprehensive Environmental Company in Korea"

[Asia Economy Reporter Onyu Lim] SK Ecoplant (formerly SK Construction) has acquired four waste treatment companies. The company plans to continue investing in environmental businesses to grow into a leading environmental company in Asia.

SK Ecoplant announced on the 3rd that it has signed stock purchase agreements (SPA) to acquire four companies: Clenco, Daewon Green Energy, Saehan Environment, and DDS, following a board resolution. Through this deal, approximately 400 billion KRW will be invested to acquire all shares (100% stake) of each company. The final acquisition amount will be confirmed after an adjustment process for the purchase price, and SK Ecoplant plans to secure the acquisition funds using its reserves and acquisition financing. A representative from SK Ecoplant stated, "Once the acquisition is completed, we expect to become the largest comprehensive environmental company in Korea."

SK Ecoplant utilized the environmental facility management company (formerly EMC Holdings) acquired last year as an anchor and, following a bolt-on (mergers and acquisitions with similar companies) strategy, acquired four waste incineration companies in the Chungcheong region. This acquisition marks a significant step in accelerating the transition of its portfolio to focus on environmental businesses, becoming the number one domestic operator with a daily waste incineration capacity of 876 tons (excluding medical waste) as well as water treatment. SK Ecoplant plans to leverage its core competencies built in the construction industry, along with the know-how and eco-friendly new technologies of the acquired companies, to advance and sophisticate waste treatment and establish a win-win cooperation model with local communities.

Clenco is a company specializing in waste incineration and steam production and supply using waste heat, located in Cheongju, Chungbuk. It owns three incinerators with a daily processing capacity of 352 tons. SK Ecoplant will acquire all shares, including 60% held by Macquarie Asset Management.

Daewon Green Energy is a waste incineration and waste heat power generation company located in Cheonan, Chungnam. It owns one incinerator with a daily processing capacity of 72 tons. It also has Daewon Hightech, a construction waste intermediate disposal company in the same region, as a 100% subsidiary. SK Ecoplant will acquire 100% of the shares held by E&F PE.

Saehan Environment is also a waste incineration company located in Cheonan, Chungnam, like Daewon Green Energy. It owns two incinerators with a daily processing capacity of 96 tons. SK Ecoplant will acquire 100% of the shares jointly held by E&F PE and IS Dongseo.

DDS is a medical waste incineration company located in Nonsan, Chungnam. Earlier this year, its processing capacity was expanded from 9.8 tons per day to 36 tons. Medical waste incineration is a field with high entry barriers as only designated companies can handle it. This acquisition is significant as it diversifies SK Ecoplant’s environmental business portfolio by securing not only industrial waste but also medical waste incineration facilities. SK Ecoplant will acquire all shares, including 87.25% held by the Industrial Bank PE office and Eugene PE, as well as shares held by the CEO.

SK Ecoplant plans to invest a total of 3 trillion KRW by 2023 to continuously pursue the development of eco-friendly new businesses and mergers and acquisitions with technology innovation companies. Through eco-friendly and new energy businesses, it aims to realize a circular economy, establish a value chain in key Asian hub countries based on its domestic business, and then expand its business scope throughout Asia.

Jae-hyun Ahn, CEO of SK Ecoplant, said, “This acquisition marks an important milestone in actively expanding our portfolio centered on environmental businesses. We will continuously review investments related to environmental businesses to grow into a leading environmental company in Asia beyond Korea.”

This content was produced with the assistance of AI translation services.