LG Chem Ltd. has reached an agreement to sell its water filter business to Glenwood Private Equity Co. for approximately 1 trillion won ($692 million), according to people familiar with the matter.
The Seoul-based private equity firm has been selected as the preferred bidder for the unit, which ranks as the world’s second-largest producer of reverse osmosis membranes with a 21% global market share. The transaction will be structured as a carve-out, with Glenwood acquiring the division’s assets, workforce, and intellectual property.
The water filter business generated revenue in the mid-200 billion won range last year, with operating profit of 90 billion won and EBITDA of 64 billion won. This values the unit at roughly 20 times EBITDA, reflecting its strong market position.
LG Chem entered the water filtration sector in 2014 through its acquisition of US-based NanoH2O and has since expanded production at its Cheongju plant. The sale comes as the South Korean chemicals giant faces headwinds in the petrochemical sector and a toughening global trade environment.
Glenwood PE reportedly plans to invest an additional 200 billion won to expand manufacturing capacity. The deal marks the third major transaction between the companies, following Glenwood’s acquisitions of LG Chem’s aesthetics business and Techcross, a water treatment unit previously spun off from LG Electronics.
