Ecobit and IMM Consortium Acquire for 2.7 Trillion Won... Bright Signal for Taeyoung Construction's Workout Graduation

Largest M&A Deal This Year
Taeyoung Construction Secures Over 500 Billion KRW in Liquidity from Sale Proceeds
Taeyoung, Under Workout, Anticipates Liquidity Improvement

The 'new owner' of Ecobit, which was put up for sale as part of Taeyoung Construction's workout (financial improvement process), has been decided as a consortium of domestic private equity fund (PEF) operator IMM Private Equity and IMM Investment.

Ecobit and IMM Consortium Acquire for 2.7 Trillion Won... Bright Signal for Taeyoung Construction's Workout Graduation

According to the investment banking (IB) industry on the 26th, Taeyoung Group has selected the IMM consortium as the preferred negotiation partner for the acquisition of Ecobit and is expected to sign the main contract. The acquisition price is approximately KRW 2.7 trillion based on the total enterprise value including debt, and about KRW 2.1 trillion based on 100% equity. This is the largest scale among mergers and acquisitions (M&A) completed this year.

Ecobit is the number one comprehensive environmental company in Korea, launched in 2021 through the merger of Taeyoung Group's TSK Corporation and the global private equity firm Kohlberg Kravis Roberts (KKR)'s Eco Solution Group. This sale was promoted as part of Taeyoung Construction's workout self-rescue plan due to project financing (PF) insolvency. TY Holdings and KKR each owned 50% of Ecobit's shares. With both parties agreeing to the sale, the IMM consortium was chosen as the new owner.

Once this sale process is completed, Taeyoung Group is expected to receive a green light for early graduation from the workout. TY Holdings will receive 50% of the sale proceeds. After repaying a loan of KRW 400 billion (interest rate 13%) to KKR, it is expected to secure liquidity exceeding KRW 500 billion.

Ecobit is the leading comprehensive waste treatment company in Korea, capable of handling not only general waste and wastewater but also medical waste. Last year, it recorded sales of KRW 674.4 billion and an operating profit of KRW 110 billion. This year's earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to be approximately KRW 250 billion.