Macquarie Asset Management is preparing to divest DIG Airgas, South Korea’s third-largest industrial gas producer, in a transaction that could fetch up to $3.6bn, with a number of global PE firms, including KKR and Brookfield Asset Management, vying for the asset, according to a report by Reuters.
The report cite unnamed sources familiar with the matter as revealing that as well as the heavyweights, infrastructure-focused investors, including I Squared Capital and Stonepeak, are among the potential bidders. Strategic interest has also emerged from major industrial gas firms, including Air Liquide and Air Products, the sources said.
Macquarie has mandated Goldman Sachs and JPMorgan to run the sale process, with non-binding bids expected later this month. The deal is being marketed at a valuation of 18 to 20 times EBITDA, which currently stands at approximately $170m to $180m, potentially putting the enterprise value in the $3.1bn to $3.6bn range.
The Seoul-based company, formerly known as Dausung Industrial Gases, was acquired by Macquarie in 2019 from MBK Partners for around KRW2.5tn ($1.85bn). Since then, DIG Airgas has expanded its operations in industrial, electronic, and specialty gases, as well as gas equipment. The potential exit is emblematic of growing private equity activity in the Asian energy and industrials space, as funds seek to capitalise on strong infrastructure and decarbonisation trends in key regional markets like South Korea.
While most parties declined to comment, a spokesperson for Air Products acknowledged its interest in expanding within South Korea, calling it a “vital and growing market,” but did not confirm participation in the bidding.
Macquarie, JPMorgan, Goldman Sachs, and all other parties named either declined or did not respond to requests for comment.
