LG Chem to sell water treatment unit to Glenwood PE for $1 bn

LG Chem has approved the sale of its water treatment filter business—currently ranked second globally in market share—for 1.4 trillion won ($ 1 billion). The decision was finalized during a board meeting held on June. 13. The business will be transferred to Glenwood Private Equity (PE), a South Korea-based investment firm. LG Chem had previously named Glenwood PE as the preferred bidder and has been engaged in negotiations leading up to the agreement.

The company entered the reverse osmosis membrane market in 2014 with its acquisition of U.S.-based NanoH2O. It later established a production facility in Cheongju, Chungcheongbuk-do, manufacturing filters that convert seawater into industrial water. In recent years, LG Chem secured the second-largest share of the global market, following Japan’s Toray Industries.

Last year, the Water Solutions unit posted 222 billion won ($162 million) in revenue and 42 billion won ($30 million) in operating profit.

The divestment is widely interpreted as part of LG Chem’s broader restructuring efforts amid ongoing weakness in its petrochemical division. A company spokesperson said the sale would allow LG Chem to “focus its resources and capabilities on three next-generation growth areas: battery materials, eco-friendly materials, and pharmaceuticals.”

[Park Soon-chan]

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