By Kane Wu and Yantoultra Ngui
HONG KONG/SINGAPORE (Reuters) -Potential bidders for Macquarie Asset Management’s South Korean industrial gas firm DIG Airgas include investment firm KKR & Co, Brookfield Asset Management, and French gas supplier Air Liquide, in a deal that could fetch up to $3.6 billion, two sources with knowledge of the matter said.
Macquarie has hired Goldman Sachs and JPMorgan to run the sale and is expecting non-binding bids this month, the sources said, declining to be named as the information is not public.
DIG Airgas, South Korea’s third-largest industrial gas producer, has also attracted interest from infrastructure funds including I Squared Capital and Stonepeak, and U.S.-based global gas and chemical firm Air Products, said the sources.
The Seoul-headquartered company has about $170 million to $180 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA), and Macquarie expects a sale to value the firm at 18-20 times core earnings, said one of the sources.
DIG Airgas and Air Liquide did not immediately respond to requests for comment.
Macquarie, JPMorgan, Goldman Sachs, KKR, Brookfield, I Squared Capital and Stonepeak declined to comment.
Air Products declined to comment on the sale.
“South Korea is a vital and growing market, and Air Products remains committed to growing its industrial gas business serving customers safely and reliably,” its spokesperson said.
Established in 1979, DIG Airgas produces industrial gases, electronic gases and gas equipment, according to its website.
Macquarie bought the company, formerly known as Dausung Industrial Gases, from South Korean private equity firm MBK Partners for 2.5 trillion won ($1.85 billion) in 2019, local media reported at the time.
($1 = 1,351.8900 won)
(Reporting by Kane Wu in Hong Kong, Yantoultra Ngui in Singapore; additional reporting by Heekyong Yang in Seoul; Editing by Sonali Paul)
