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Mirae Asset consortium invests $200 million in Essex Solutions

Published: 05 Jan. 2025, 17:58 Updated: 05 Jan. 2025, 18:52

SHIN HA-NEE
[email protected]

Mirae Asset's logo is shown outside Mirae Asset Global Investments' headquarters in central Seoul [MIRAE ASSET GLOBAL INVESTMENTS]

Mirae Asset Global Investments invested $200 million in Essex Solutions, a U.S. magnet wire subsidiary of LS Group, through a financing agreement, the firm said Sunday.

The latest investment deal was part of a pre-initial public offering (IPO) funding round by Essex Solutions, which is owned by LS Group, Korea’s major cable supplier.

With the signing of the contract on Friday, a consortium of Mirae Asset and the Korea Climate & Governance Improvement Fund secured around a 20 percent stake in Essex Solutions, according to Mirae Asset. Essex Solutions’ pre-IPO valuation was estimated at around $1 billion.

The signing of the formal contract came after the consortium was named a preferred bidder for the financing in August.

Mirae Asset Global Investments CEO Choi Chang-hoon spearheaded the project, which marked a major turning point for the firm’s private equity business, as Mirae Asset expects the latest milestone to further enhance its private equity unit’s global competitiveness and expand investment opportunities. Choi, for one, visited Essex Solutions’ headquarters in the United States to meet with the company’s executives in person to foster mutual trust, according to the firm.

Essex Solutions, originally established as Essex Wire Corporation in 1930 in the United States, is the world’s largest magnet wire manufacturer. The company was acquired by LS Group in 2008 for around 1 trillion won ($679 million), and changed its name from Superior Essex to Essex Solutions last year.

Magnet wires are insulated copper wires used in the production of motors for EVs and hybrid cars. Essex Solutions holds a dominance in the U.S. magnet wire market as the leading supplier, and currently operates production bases across North and South America, Europe and Asia.

The company aims to secure a market share of more than 70 percent in North America and 50 percent in Europe in the next five years. LS Group plans to begin the IPO proceedings for Essex Solutions this year, and is currently considering listing the company on Nasdaq.

BY SHIN HA-NEE [[email protected]]