Alphabiz - Carlyle to Acquire Chungho Nice in $1 Billion Deal Following Founder’s Passing

Photo courtesy of Yonhap News

[Alpha Biz= Paul Lee] U.S.-based private equity firm The Carlyle Group has agreed to acquire a controlling stake in Chungho Nice, known for its ice-making water purifiers, in a deal valued at around 1 trillion won (approximately $1 billion).

According to investment banking sources on June 7, Carlyle and the bereaved family of founder Jung Hwi-dong recently signed a share purchase agreement (SPA). Roughly half of the acquisition cost—about 500 billion won—will be financed through Carlyle’s Asia fund, with the remainder covered by acquisition financing.

Carlyle had previously signed a memorandum of understanding (MOU) in March and conducted due diligence ahead of finalizing the transaction.

As part of the deal, Carlyle will acquire full stakes in Chungho Nice’s affiliates, including Microfilter and MCM. Combined annual revenue of the group, including affiliates, is estimated to reach around 700 billion won.

Founded in 1993, Chungho Nice was once a leading player in South Korea’s water purifier rental market but currently ranks fifth in market share.

Prior to his passing in June last year at the age of 67, Jung Hwi-dong held a 75.1% stake in the company, while Microfilter—of which he owned 80%—held an additional 13%, effectively maintaining control of the group. The remaining shares were largely held by family members and close associates.

Following his death, his wife Lee Kyung-eun succeeded him as chairwoman. The inheritance tax on the shares transferred to Lee and their son is estimated to approach 300 billion won. Even with installment payment options, the family is believed to have concluded that selling the company was the most viable means of securing the necessary funds.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)