Brookfield, Stonepeak, Air Liquide Vie for DIG Airgas in $3.6B Bid

Key Takeaways

Sector: Industrials.
Geography: South Korea.

Analysis

Brookfield Asset Management, Stonepeak, and Air Liquide have been shortlisted in the final round of bidding for South Korea’s third-largest industrial gas producer, DIG Airgas, in a sale process that could be one of the country's biggest private equity exits to date.

The sale, managed by Macquarie Asset Management, is expected to fetch between $3.6 billion and $3.8 billion, representing a premium valuation of 18–20x EBITDA. DIG Airgas currently generates $170–$180 million in annual EBITDA, positioning the transaction as a landmark deal in the Asian industrial sector.

Binding offers are anticipated by late July or early August, and discussions are said to be progressing rapidly. If successful, the deal would significantly expand the buyers' strategic positioning in Asia’s fast-growing industrial gas market.

Macquarie acquired DIG Airgas (formerly Dausung Industrial Gases) in 2019 from MBK Partners for $1.85 billion. Since then, the firm has implemented an aggressive growth strategy, scaling operations and improving profitability to position the company for a premium exit. The sale would mark a full-cycle realization for Macquarie and a milestone for private equity exits in South Korea.

For Brookfield, this move follows its 2022 acquisition of SK Airplus, a leading gas supplier to semiconductor giant SK Hynix. Acquiring DIG Airgas would cement Brookfield’s status as a major player in Korea’s industrial sector.

Stonepeak, on the other hand, sees the acquisition as a gateway into the Asian industrial gas market, aligning with its global strategy of expanding infrastructure and essential services investments in emerging markets.

Meanwhile, Air Liquide, which has operated in South Korea since 1996, views the bid as an opportunity to enhance its regional supply chain capabilities and gain a stronger foothold in a strategically important market.

The sale process is being advised by Goldman Sachs and JPMorgan, while all participating firms have so far declined to comment publicly on the proceedings.

As the final round approaches, the DIG Airgas transaction is shaping up to be a bellwether for high-value cross-border investments in Korea’s industrial space.