22 January 2018
Baring Private Equity Asia Exits Halla Cement to Asia Cement for $723 million
Second Full Realization from BPEA’s Most Recent Fund VI
Baring Private Equity Asia today announced that its affiliated private equity funds (“BPEA”) have sold leading Korean cement business Halla Cement to Asia Cement for a total enterprise value of $723 million. The combined business will be the third largest cement player in Korea, with a combined market share of 19%.
Halla Cement is one of South Korea’s leading cement producers with approximately 520 employees. Its primary operations are in cement manufacturing and sales. It operates a state-of-the-art integrated main plant and three slag cement plants, with an annual cement capacity of 7.6 million tons. The core manufacturing facility, Okgye Plant, has both limestone reserves and waterfront access, and it is supported by 11 distribution centers located at strategic positions across the country, consisting of seven coastal and four inland centers.
Formerly known as Lafarge Halla Cement, BPEA invested in the company in April 2016, carving the business out from parent company LafargeHolcim and creating a new standalone business with a fresh corporate identity. BPEA subsequently took full control of Halla Cement in May 2017.
Han Chul KIM, Managing Director of BPEA, commented: “Our relationship with the LafargeHolcim group dates back to 2011, and we’re pleased that we were able to work closely with them to successfully achieve their strategic realignment through this complex carve out. The Korean cement industry is consolidating, and Halla Cement has a leading market position and a broad coastal presence which makes a perfect combination with a player like Asia Cement, who has a deep inland network. The merger will create a top 3 player in Korea that is well positioned to grow into the market leader.”
Jonggoo Moon, CEO of Halla Cement, commented: “BPEA were very supportive throughout the time of their investment, and we appreciated the operational assistance they provided to help grow the business. Their insights were invaluable from Day 1. As one of the largest cement companies in Korea today, we are excited for the future potential of the combined business following the acquisition.”
The sale marks the second full exit for BPEA’s most recent Fund VI, following the exit of its investment in Japanese home retailer Joyful Honda in 2017.
About Baring Private Equity Asia
Baring Private Equity Asia (BPEA) is one of the largest and most established private alternative investment firms in Asia, with total committed capital of over USD11 billion. The firm runs a pan-Asian investment program, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions, as well as a private credit and a pan-Asian real estate private equity investment program. The firm has been investing in Asia since its formation in 1997 and has over 150 employees located across offices in Hong Kong, China, India, Indonesia, Japan and Singapore. BPEA currently has over 30 portfolio companies active across Asia with a total of 150,000 employees and sales of approximately USD28 billion in 2016. For more information, please visit www.bpeasia.com
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