Mirae Asset Management Completes Investment in Essex Solutions, 'Global No.1 in Power Distribution'

Mirae Asset Global Investments announced on the 5th that it has finalized an investment contract worth 290 billion KRW with Essex Solutions, a US subsidiary of LS Group.

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Selected as the preferred negotiation partner for the Essex Solutions investment in August 2024, the Mirae Asset-KCGI consortium successfully completed the project fund formation and signed the main contract on the 3rd of this month. This investment was conducted by the investor acquiring shares issued through a third-party allotment paid-in capital increase by the Mirae Asset-KCGI consortium.

Through this investment, the Mirae Asset-KCGI consortium will acquire approximately 20% of Essex Solutions' shares. This translates to a pre-IPO market capitalization of Essex Solutions of about 1 billion USD, approximately 1.45 trillion KRW.

Essex Solutions, acquired by LS Group in 2008, originated from Essex Wire Corporation, a US wire company established in 1930. Recently, with the expanding demand for hybrid vehicles, which are an intermediate stage between internal combustion engine vehicles and electric vehicles, it has shown stable profitability. Through continuous growth and innovation, it is currently the global number one in the wire and cable industry.

Recognized as a prime investment destination, the pre-IPO of Essex Solutions attracted competitive bids from leading investment firms such as the Government of Singapore Investment Corporation (GIC), Bain Capital, Goldman Sachs, and IMM.

Mirae Asset Group has built a solid partnership based on mutual trust with LS Group. Vice Chairman Choi Chang-hoon of Mirae Asset Global Investments personally led this investment, which marks a turning point for Mirae Asset Private Equity (PE).

Vice Chairman Choi actively communicated with LS Group by visiting Essex Solutions' US headquarters and holding meetings with top executives, successfully concluding the contract.

Mirae Asset Global Investments is a traditional powerhouse that has accumulated over 20 years of private equity fund (PEF) investment know-how since launching Korea’s first native PEF. It holds an outstanding global M&A track record among domestic PEFs, including the acquisition of Acushnet. It has also built exit achievements, such as successfully recovering investments through the listing of HK Inno.N.

Last year, the PE division strengthened its capabilities through organizational restructuring. By merging with its subsidiary, Multi-Asset Global Investments, a specialized alternative investment management company, it stabilized asset value and maximized synergy. Through this Essex Solutions investment, Mirae Asset PE is expected to further enhance its competitiveness and actively seek new investment opportunities based on this foundation.

Vice Chairman Choi Chang-hoon of Mirae Asset Global Investments said, "Through this investment, Mirae Asset PE has created another meaningful case in the market," adding, "Going forward, Mirae Asset will lead market development by diversifying its portfolio based on its global network and continuously expanding investments as a ‘PE powerhouse.’"

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