Introduction
Potential bidders for Macquarie Asset Management's South Korean industrial gas firm, DIG Airgas, include notable names such as KKR & Co, Brookfield Asset Management, and the French gas supplier Air Liquide. This deal could reach a value of up to $3.6 billion, according to sources familiar with the situation.Context
Macquarie has engaged Goldman Sachs and JPMorgan to manage the sale of DIG Airgas, with non-binding bids anticipated this month. As South Korea's third-largest industrial gas producer, DIG Airgas has garnered interest not only from investment firms but also from infrastructure funds, including I Squared Capital and Stonepeak, as well as the U.S.-based global gas and chemical firm Air Products.Developments
The Seoul-based company reportedly generates between $170 million and $180 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). Macquarie aims to value the firm at approximately 18-20 times its core earnings.DIG Airgas and Air Liquide have not provided immediate comments regarding the bidding process. Similarly, Macquarie, JPMorgan, Goldman Sachs, KKR, Brookfield, I Squared Capital, and Stonepeak have chosen not to comment on the matter, while Air Products also declined to discuss the sale. A spokesperson for Air Products confirmed that the company is committed to expanding its industrial gas operations in South Korea, a vital and growing market.
Founded in 1979, DIG Airgas specializes in producing industrial gases, electronic gases, and gas equipment, as detailed on its website. In 2019, Macquarie purchased the company, previously known as Dausung Industrial Gases, from South Korean private equity firm MBK Partners for 2.5 trillion won (approximately $1.85 billion).