Mirae Asset Global Investments announced Sunday that it has signed a 290 billion won ($200 million) contract with Essex Solutions, a US wire manufacturing affiliate under South Korean cable and industrial electric machinery conglomerate LS Group.
Through the deal, a consortium consisting Mirae Asset and local private equity house KCGI is to invest 290 billion won in Essex Solutions, acquiring a 20 percent stake in the company through a paid-in capital increase.
Essex Solutions is a US magnet wire manufacturer acquired by LS Group in 2008. It supplies copper magnet wire products to the automotive, energy and industrial sectors. Specializing in the products for electronic and hybrid vehicles, the LS affiliate is expected to experience robust growth.
With the investment, the market capitalization of Essex Solutions is to jump to around $1 billion, bolstering its initial public offering plan. LS Group seeks to make Essex Solutions go public within this year.
Though the affiliate initially planned to make its market debut on Korea’s main bourse Kospi, it has been considering a Nasdaq debut, backed by the strong interest from the US capital market, according to the company.
Big-name capital market players, including Singaporean sovereign wealth fund GIC, Bain Capital, Goldman Sachs and IMM, have shown interest in investing in the affiliate before the IPO.
Mirae Asset Global Investments CEO Choi Chang-hoon led the investment deal with the company’s private equity unit, visiting Essex Solutions’ headquarters in the US and held meetings with its C-suite executives, the firm explained.
“Through the investment, Mirae Asset Private Equity was able to make a meaningful market feat,” Choi said. “As a major private equity house, we will lead the market growth through portfolio diversification based on a global network and continuous expansion of investments.”
