LG Chem, a leading chemical company under LG Group, said Friday it has decided to sell its water solution business to Glenwood Private Equity for 1.4 trillion won ($1 billion), as part of the company's effort to streamline operations and focus on its key businesses.
In a regulatory filing, LG Chem said its board approved the sale of the water solutions business unit, which is under the company's advanced materials division, to Korea Water Solution Holdings, a special purpose company established by local private equity firm Glenwood PE.
The water solutions unit specializes in manufacturing reverse osmosis membranes used in seawater desalination and industrial wastewater treatment. Recognized as the world's second-largest player in the sector, the business reported revenues of 222 billion won in 2024.
LG Chem stated the divestiture aligns with its portfolio restructuring efforts to focus on three core growth engines: eco-friendly materials, battery materials and innovative pharmaceuticals. The company emphasized that this move is part of its “selection and concentration” strategy amid challenging market conditions in petrochemicals and batteries.
This acquisition builds on Glenwood PE’s strategy of acquiring and scaling spun-off business divisions from major conglomerates. The firm previously acquired LG Chem’s diagnostics unit and water treatment subsidiary Techcross. Glenwood PE plans to inject an additional 200 billion won into the Water Solutions unit to expand production capacity.
hyelimchung@heraldcorp.com
