MBK acquires Daesung from Goldman Sachs-led group

Goldman Sachs has relinquished its majority stake in the Seoul-based industrial gas company, which it bought for $400 million in 2014.

North Asia-focused private equity firm MBK Partners has acquired South Korea’s largest specialist gas producer Daesung Industrial Gases from a Goldman Sachs-led investor group, according to a company filing.

Financial terms were not disclosed but unconfirmed South Korean media reports indicate the sale price is about $2 billion.

It unclear whether MBK made the investment through its latest buyout fund, the $4.1 billion MBK Partners IV, which closed in November becoming the third largest fund Asia-focused private equity fund ever.

Seoul-headquartered MBK has more than $10 billion in assets under management and focuses on management-led buyouts in Greater China, Japan, and South Korea.

Goldman Sachs acquired a 68 percent stake in Daesung Industrial Gases in 2014 for KRW 471.5 billion ($400 million; €377 million), while the remaining 32 percent belonged to Daesung Group and other shareholders.

Daesung Industrial Gases is South Korea’s second largest industrial gas producer, which includes special gases for screen displays, semiconductors and medical gases, and serves customers such as LG Display, Samsung Electronics and SK Hynix. In the third quarter of 2016, the gas supplier posted KRW 383.6 billion in sales and KRW 47.6 billion in operating profits.

MBK and Goldman Sachs could not be reached for comment by press time.