LG Chem’s Sale of its Diagnosis Business to Korea IVD Holdings

On June 8, 2023, LG Chem executed a Business Transfer Agreement to sell its Diagnosis business to Korea IVD Holdings Co., Ltd, an affiliate of Glenwood Private Equity Co., Ltd. As counsel for LG Chem, Lee & Ko advised on all aspects of the transaction, including transaction structuring and the preparation, negotiation and finalization of the transaction documents.

This transaction initially began as an auction process with multiple potential purchasers. Once Glenwood PE was selected as the preferred bidder, various complicated issues arose in connection with the carve-out business transfer, but Lee & Ko provided efficient advice during the negotiation/discussion sessions to enable the parties to execute the definitive agreements efficiently. Eventually, the transaction has been successfully closed on October 4, 2023.

As a Carve-out deal, not only this transaction required the transfer of contract relationships, employees, permits, assets, rights, and obligations to the purchaser, but also the preparations for the purchaser to acquire permits and for the divestiture of the factory site by the closing date. During the closing process, Lee & Ko was involved in the divestiture of the factory site, review of all environmental permits, temporary joint use of physical facilities. It is evaluated that Lee&Ko led to a successful transaction through prompt and thorough consultations across a wide range of areas, including negotiation and conclusion of several addendum agreements.