SEOUL, June 16 (AJP) - LG Chem has agreed to sell its water treatment filter business to Glenwood Private Equity for 1.4 trillion won (approximately $1 billion), as South Korea’s largest chemical company accelerates efforts to streamline operations and sharpen its focus on high-growth sectors.
The deal, signed on June 13, will transfer LG Chem’s Water Solution unit to Korea Water Solution Holdings, a special purpose entity established by Glenwood PE.
The Water Solution business, built on reverse osmosis membrane technology, ranks as the world’s second-largest provider in seawater desalination. LG Chem entered the sector in 2014 through its $200 million acquisition of California-based NanoH2O.
Despite its technical prominence, the unit accounted for only 0.45 percent of LG Chem’s consolidated revenue last year, generating 222 billion won in sales, with total assets of 377 billion won.
LG Chem said the divestiture will allow the company to redirect capital and internal capabilities toward three strategic pillars: battery materials, eco-friendly materials, and pharmaceuticals. The move is part of a broader corporate restructuring in response to prolonged weakness in the petrochemical industry.
At a recent executive meeting, LG Group Chairman Koo Kwang-mo underscored the importance of “selection and concentration,” urging affiliates to focus on areas with sustainable competitive advantages, build high entry barriers, and align capital expenditures with long-term strategy.
For Glenwood PE, the acquisition represents a continuation of its carve-out investment strategy.
The private equity firm plans to inject an additional 200 billion won into the business, including funding for a fourth production facility. The expansion is intended to boost global competitiveness and enhance responsiveness to increasing demand from both new and existing customers.
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