Affirma Capital, a private equity fund (PEF) management company, will acquire waste treatment companies held by Equus Development, including CEK (formerly KC Environmental Services), for 400 billion won.
According to investment banking (IB) industry sources on the 17th, Affirma Capital recently signed a stock purchase agreement (SPA) to acquire 5 to 6 waste treatment companies, including CEK, from Singapore's Equus Development.
Affirma plans to acquire CEK and others entirely in cash without acquisition financing. Some of the investment will be covered by a blind fund, while some limited partners (LPs) will make additional investments in a coinvestment form. The closing is expected to be completed by August.
CEK is the successor to KC Environmental Services. It is the number one company in terms of waste incineration capacity in the Gyeongsang and Jeolla regions, and the third largest in the country. The companies that Affirma is acquiring, including CEK, reportedly recorded around 30 billion won in earnings before interest, taxes, depreciation, and amortization (EBITDA) last year.