Brookfield, Stonepeak, Air Liquide Bid for Macquarie's S. Korean Gas Firm

Macquarie Asset Management has moved a step closer to divesting its South Korean industrial gas company, DIG Airgas, by naming three global contenders for the final bidding round. Canadian investment firm Brookfield Asset Management, U.S.-based Stonepeak, and French industrial gas giant Air Liquide have all been shortlisted to submit binding offers. The final bids are expected to be submitted by late July or early August.

A Multi-Billion Dollar Transaction in the Works

The deal, which is being overseen by financial advisers Goldman Sachs and JP Morgan, could be worth as much as $3.6 billion. If the transaction goes through, it would mark the largest-ever investment in South Korea for both Brookfield and Stonepeak, two firms with significant holdings in infrastructure assets globally.

Brookfield and Stonepeak Eyeing Expansion in Korea

Brookfield already has a presence in South Korea’s industrial gas sector, having acquired SK Airplus in 2022. That facility supplies gases to SK Hynix, the world’s second-largest manufacturer of memory semiconductors. For Stonepeak, however, a successful bid would represent its first major foray into the Asian industrial gases market, as the New York-based firm currently has no such assets in the region.

Air Liquide’s Longstanding Footprint in the Region

Air Liquide, based in Paris, brings decades of experience to the table. The company has operated in South Korea since 1996 and supplies gases across a wide variety of industries including chemicals, construction, healthcare, petrochemicals, food and beverages, and refining. Its extensive footprint could give it a strategic advantage in the bidding process.

DIG Airgas: A Profitable Industrial Player

DIG Airgas is among South Korea’s leading industrial gas suppliers and is headquartered in Seoul. The company generates annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the range of $170 million to $180 million. Macquarie is expecting to sell the business at a valuation of 18 to 20 times its core earnings, reflecting the sector's attractive fundamentals.

A Look at DIG Airgas’ Origins and Macquarie’s Ownership

Founded in 1979, DIG Airgas, formerly known as Dausung Industrial Gases, produces a broad range of gases, including those used in industrial and electronic applications, along with related gas-handling equipment. Macquarie acquired the company from South Korea’s MBK Partners in 2019 for approximately 2.5 trillion won (about $1.85 billion). Now, with its sale process entering the final stretch, a new chapter may soon begin for this critical industrial supplier.