Mirae Asset Global Investments has invested $200 million in Essex Solutions, securing a 20% stake in the US-based magnet wire manufacturer controlled by South Korea’s LS Group.
The deal, which involves Mirae Asset partnering with KCGI in a consortium, values Essex Solutions through a pre-IPO arrangement. The investment comes as the company positions itself in the expanding electric vehicle components sector.
Essex Solutions, which traces its roots to a 1930s American wire company, has evolved from its traditional focus on transformer and motor components. LS Group acquired the business, then known as Superior Essex, in 2008 for 1 trillion won ($750 million).
The company strengthened its market position in 2020 by forming a joint venture with Japan’s Furukawa Electric. Last April, Essex Solutions bought out Furukawa’s stake in the venture and rebranded.
LS Group is now preparing Essex Solutions for a public offering this year. While initially targeting South Korea’s Kosdaq market, growing interest from US investors has prompted the company to consider a Nasdaq listing.
The magnet wire industry anticipates substantial growth, driven by increasing demand for EV motor components that convert electrical energy into mechanical power.
