EQT’s global infrastructure fund is to acquire KJ Environment and affiliated companies from Genesis Private Equity to establish a waste treatment platform in South Korea.
EQT Infrastructure VI is buying a portfolio of businesses that encompass the waste treatment value chain, including recyclable waste sorting, plastic recycling and waste-to-energy.
Private equity and infrastructure fund manager EQT said the portfolio has “strategically located sites” in the Greater Seoul Metropolitan Area, serving catchment areas covering more than 50% of the country’s population and its GDP.
The firm said KJ Environment was 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 for human contact.
The acquisition marks EQT’s second infrastructure investment in South Korea. Last year, EQT acquired a 68% stake in South Korean cyber and physical security company SK Shieldus.
The latest transaction is part of EQT’s thematic investments in climate-related infrastructure, supporting resource efficiency and the circular economy.
EQT said it was committed to working with KJ Environment to provide capital and operational support to expand its customer partnerships, introduce automated machinery and digital solutions, and continue to build trust within the communities it serves.
Sang Jun Suh, partner in the EQT infrastructure advisory team, said: “We are delighted to be partnering with KJ Environment and its talented management team. We look forward to applying EQT’s extensive experience investing in sustainable waste and recycling solutions across geographies, combined with our strong local footprint and industrial network, to help KJ Environment elevate into a true market leader in the waste treatment space.
“This investment also marks EQT’s latest milestone in South Korea, a market we believe holds tremendous potential and is strategically important to our regional investment strategy.”
EQT has been investing in South Korea since 2009 and said it views the market “as a key part of the firm’s Asia-Pacific strategy across infrastructure, private equity and real estate”.
Following the transaction, EQT Infrastructure VI is expected to be 45-50% invested, the firm said.
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