This article was posted on the ChosunBiz MoneyMove site at 11:08 a.m. on Apr. 30, 2025.
Private equity firm Theham Partners has decided to acquire 100% equity of VL Investment's water processing company, Water Management Korea, for 126.5 billion won. A stock purchase agreement (SPA) is expected to be signed next month. After the sale of the company, VL Investment will remain a co-general partner (Co-GP) and continue participating in management.
According to investment banking (IB) industry sources on the 30th, Theham Partners is in the process of raising funds for the acquisition of 100% equity of Water Management Korea from VL Investment.
Theham Partners is raising a project fund totaling 135 billion won. It is reported that the Military Mutual Aid Association has joined as an anchor limited partner (LP) early on. The plan is to raise the entire 135 billion won as equity, while later planning to raise 60 billion won in acquisition financing to support Water Management Korea in executing a bolt-on strategy to acquire other similar companies and enhance market dominance.
Notably, the seller, VL Investment, will continue to participate in management after the ownership of Water Management Korea changes. An IB industry official noted, "There are very few investors with as much experience in the waste industry as VL Investment, so I understand they will remain involved in managing the company after selling it to Theham." VL Investment will also be listed as a Co-GP in the project fund of the acquirer, Theham Partners.
Water Management Korea was established in October 2018 when VL Investment acquired seven companies, including five wastewater treatment companies, one waste acid recycling company, and one pharmaceutical distributor, through bolt-on acquisitions. The wastewater treatment companies handle wastewater generated by industries such as SK and LG, separating it into water and sludge to send to sewage treatment plants and landfills, respectively. The waste acid recycling company recycles waste hydrochloric acid into copper and hydrochloric acid. The facilities are located in Incheon, Asan in South Chungcheong Province, Daegu, and Busan.
Water Management Korea had a revenue of 57.5 billion won last year, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of 15.1 billion won. As of 2023, the company held a 13% market share, ranking first in South Korea.