A fund managed by the investment company EQT will acquire the Korean company KJ Environment and its affiliated firms. With the business units covered by the deal, EQT plans to establish an "end-to-end waste treatment platform" specialising in plastics recycling and energy recovery, the Swedish investment firm announced on Friday.
EQT did not disclose the agreed purchase price. Nor were financial performance figures for KJ Environment such as its turnover, the number of employees or the waste volumes handled divulged as part of the announcement. EQT named the Korean investment company Genesis Private Equity as the seller. The transaction is expected to be finalised in the fourth quarter.
According to EQT, KJ Environment has sites in the Seoul metropolitan area and is "a leading plastic recycler in South Korea in terms of treated volume, with stable access to high-quality waste plastic feedstock and cutting-edge technology to produce advanced recycled plastics suitable for food and beverage products that involve human contact". The investor anticipates an increase in global demand for recycled plastic due to tightened regulations and voluntary commitments.
EQT cites the sorting of recyclable materials and energy recovery from waste as further core competencies of KJ Environment. "The platform is thus well positioned to further expand its leading role in waste treatment with a focus on infrastructure for the circular economy," says the future owner.
EQT pledged to work closely with KJ Environment and the affiliated companies to provide both capital and operational support. The South Korean company's future owners also plan to introduce automated machinery and digital solutions.
According to EQT, the acquisition is its second in Korea. The investor has already been involved in the international recycling and waste management industry for some time. From 2013 to 2016, it owned the German waste incineration plant operator EEW Energy from Waste, which was subsequently sold to the Chinese company Beijing Enterprises Holdings Limited (BEHL). It acquired the British waste-to-energy plant operator Encyclis, then still operating as Covanta Europe, in summer 2021, as well as Covanta's US activities. The latter business was renamed Reworld this April.
EQT's current portfolio also includes the US waste management company Heritage Environmental Services as well as the lithium-ion battery (LIB) recycler Cirba.
