Macquarie's $3.6 billion S. Korean gas firm draws interest from KKR, Brookfield and industry peers, sources say
HONG KONG/SINGAPORE, June 10 (Reuters) - Potential bidders for Macquarie Asset Management's South Korean industrial gas firm DIG Airgas include investment firm KKR & Co (KKR.N), opens new tab, Brookfield Asset Management (BAM.TO), opens new tab, and French gas supplier Air Liquide (AIRP.PA), opens new tab, in a deal that could fetch up to $3.6 billion, two sources with knowledge of the matter said.
Macquarie (MQG.AX), opens new tab has hired Goldman Sachs (GS.N), opens new tab and JPMorgan (JPM.N), opens new tab 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 (APD.N), opens new tab, 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)
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