Private equity firm Lotus Private Equity (Lotus PE) is set to take control of the synthetic turf operations of South Korea’s Kolon Group. Together with new technology investor Hana S&B Investment and Ingenium Equity Partners, Lotus PE will acquire full management control of Apex Kolon, the newly established entity housing Kolon’s synthetic turf and car mat manufacturing.
The deal is valued at roughly 40 billion won (approximately USD 30 million) and is expected to close in mid-October.
The transaction is a carve-out: the synthetic turf and car mat operations are being separated from Kolon Glotech, the fabric-processing affiliate of Kolon Group, and sold off independently. Lotus PE reportedly entered as a buyer in the first half of this year and has been negotiating the deal since.
Late last month, Kolon Glotech’s board approved a formal split-off of its turf and car mat manufacturing units into the new entity, Apex Kolon. Following a shareholders’ meeting this month and a creditor objection period, the legal separation is expected to be completed in October.
What makes the deal attractive to Lotus PE is that acquiring Apex Kolon gives it access to Kolon Group’s entire synthetic turf and car mat production capacity — with turf as the larger of the two lines. Together, these two product lines accounted for more than 80% of Kolon Glotech’s revenue.
The sale is part of a broader restructuring of Kolon Group’s business portfolio: the conglomerate is also working to sell the functional and image materials units within Kolon Industries’ specialty division.
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