KKR & Co. is negotiating final terms to acquire SK Ecoplant’s waste management subsidiaries for approximately 1.5 trillion won ($1.1 billion), marking the latest attempt by the debt-laden South Korean conglomerate to restructure its operations.
The private equity giant emerged as the sole bidder for Renewus and Renewone, with both parties aiming to finalize a share purchase agreement by early August, according to investment banking sources. KKR’s offer falls short of SK Ecoplant’s initial 2 trillion won asking price, forcing the seller to lower expectations following tepid auction interest.
The potential divestiture reflects SK Ecoplant’s urgent need to address mounting financial pressure. The company has accumulated over 4 trillion won in debt from an acquisition spree since 2020, resulting in annual interest payments of roughly 300 billion won. The firm had raised 1 trillion won from private equity investors in 2022 under conditions requiring a public listing within five years.
SK Ecoplant now plans to refocus on semiconductor infrastructure and IT recycling through its SK Tes unit, capitalizing on growing electronic waste from data centers during the artificial intelligence boom. The strategic pivot represents a significant retreat from environmental services, where the company had positioned itself as a leader following multiple acquisitions.
However, deal complexities remain, with KKR reportedly seeking contractual protections against unforeseen liabilities and earn-out provisions tied to future performance.
