France’s Saint-Gobain sells Korea business to Glenwood Private Equity

A low-angle shot of the sharp edges of a glass skyscraper shrouded in fog. Photo: Patrick Tomasso on Unsplash

France-based Saint-Gobain has announced it has entered into an agreement to sell its construction glass business in South Korea to investment management company Glenwood Private Equity at an enterprise value of 240 million euros ($263 million).

This transaction, which is expected to close at the end of 2019, is part of Saint-Gobain’s portfolio optimization strategy.

The firm’s Korean business, Hankuk Glass Industries, supplies glass to the construction industry. In 2018, the business generated revenues of around 200 million euros and operating income of 10 million euros. The company employs 310 people and consists principally of two flat glass production units and a transformation line.

Saint-Gobain Corporation was founded in 1990. The company’s line of business includes the manufacturing of glass containers. Last year, the company posted sales of 41.8 billion euros.

Glenwood Private Equity is an investment management company in Korea, backed by the son of Samsung Group’s former vice-chairman. The firm specializes in industrial activities and the construction sector.

Glenwood utilizes a variety of investment structures including acquisitions of controlling interests, minority investments with capital control, and recapitalizations.

Among other deals in South Korea, VIG Partners recently reached an agreement to pay 165 billion won ($137.6 million) for a controlling stake in blended education service provider D.Share Co Ltd. The transaction, expected to close in early November, is the maiden investment made by VIG Partners’s fourth fund. It is also the first education investment announced by the buyout firm.

Meanwhile, a consortium backed by Korea’s Meritz Securities Co. is in exclusive negotiations to buy the Finance Tower in Brussels for more than 1.3 billion euros ($1.4 billion), Bloomberg reported. The consortium includes European asset manager The Valesco Group, and Seoul-based AIP Asset Management.