DL Chemical will sell its subsidiary Cariflex, the world's No. 1 manufacturer of medical synthetic rubber.
According to industry sources on the 4th, DL Chemical held a board meeting that day and selected Glanwood Private Equity (Glanwood PE) as the preferred bidder for the sale of Cariflex. The target of the sale is the entire 100% stake in Cariflex held by DL Chemical, with UBS serving as the deal advisor.
The sale price is reportedly around 1.7 trillion won.
Cariflex produces polyisoprene synthetic rubber and latex (IRL), which are used as raw materials for surgical gloves and syringe rubber stoppers. Despite sluggish conditions in the petrochemical industry, it operates a highly profitable business, maintaining an operating profit margin in the 20% range. Its earnings before interest, taxes, depreciation and amortization (EBITDA) last year is known to be approximately 150 billion won.
Previously, DL Chemical acquired the IRL division of U.S. chemical company Crayton, Cariflex's predecessor, in March 2020 for $530 million (approximately 620 billion won at the time). In 2022, it invested approximately 500 billion won to begin construction of the world's largest latex production plant on Jurong Island in Singapore, and the plant commenced commercial operations in November 2024.
A DL Chemical official said, "The funds secured through the sale of Cariflex will be used for identifying future new growth drivers and strengthening the company's fundamental capabilities." The official added, "We will also invest in the restructuring of the Yeosu business and actively cooperate with the industrial structure reform being promoted by the government."
in INDUSTRY
