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Mirae Asset Global Investments logo / Courtesy of Mirae Asset Global Investments
Mirae Asset Global Investments has signed a 2.9 trillion won ($1.9 billion) equity financing deal with Essex Solutions, a global supplier of magnet wire for automotive and energy, the financial services provider said, Sunday. Essex Solutions is a U.S. subsidiary of LS Group.
The deal will elevate Mirae Asset as the emerging private equity deal powerhouse, cementing its two decades of leadership since the launch of the first homegrown private equity fund in 2004, it said.
Among the bidders for the underwriting of the pre-initial public offering (IPO) deal included leading global investors such as Singapore's GIC, Bain Capital, Goldman Sachs and IMM.
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According to the firm, the consortium of Mirae Asset and Korea Climate and Governance Improvement Fund (KCGI) signed a third-party equity financing deal, Friday, about five months after it had been selected as the preferred bidder in August 2024.
Mirae Asset Group Chairman Park Hyeon-joo
The consortium will acquire a 20 percent stake in Essex Solutions, translating to a pre-IPO market capitalization of about $1 billion.
The U.S. entity originated from Essex Wire Corp., an original equipment manufacturer founded in 1930.
A merger of Essex Wire Corp. and Superior Cable in April 1999 formed Superior Essex. LS Group acquired Superior Essex for $900 million in 2008 to extend its reach into the North American and European markets.
The profitability of the magnet wire supplier soared, buttressed by growing demand for hybrid vehicles.
Mirae Asset Group and LS Group have maintained close business partnerships, solidified by Mirae Asset Global Investments CEO Choi Chang-hoon, the architect of Mirae Asset's private equity business.
Choi visited Essex Solutions' U.S. headquarters to meet with the company's management and strengthen communication with LS Group.
Mirae Asset's global mergers and acquisitions track record includes its involvement with Acushnet, a leading global designer and manufacturer of golf products.
"We will continue to fortify our private equity business with portfolio diversification, underpinned by a strong global network, robust market developments and investment expansion," Choi said.
