Gaw Capital Partners, a Hong Kong-based real estate private equity firm, will acquire a 100% stake in Coentec, a domestic integrated waste management company, for $500 million (approximately 735 billion won).

According to investment banking (IB) industry sources on Jan. 19, Gaw Capital signed a share purchase agreement with private equity fund (PEF) E&F Private Equity and IS Dongseo, who were pursuing the sale of Coentec. Gaw Capital explained, “Coentec is our first investment in the waste management sector within the infrastructure division and a strategic hub for our waste management business in Asia.”

Gaw Capital stated that Coentec is the number one operator in South Korea’s waste incineration and steam production sector by treatment capacity at a single site, recording one of the highest earnings before interest, taxes, depreciation, and amortization (EBITDA) margins in the industry. Coentec operates an integrated waste management platform that covers the entire waste treatment process at its facility in the Ulsan Industrial Complex, a hub for the automotive, shipbuilding, and petrochemical industries. Gaw Capital plans to foster growth through facility expansion and additional acquisitions of similar companies.

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