GS Elevator

'Growth Bet' Genesis PE Invests 100 Billion won In GS Elevator
Acquisition Structure of 'Old Stock + New Stock' Remains Shareholder of GS Engineering & Construction...Plans to strengthen O&M competitiveness


Genesis Private Equity, a private equity fund (PEF) management company, will invest in GS Elevator. It highly evaluated the possibility that the domestic elevator market will continue to grow, focusing on replacement and maintenance (O&M). The company plans to focus on developing new technologies and applying circular economy themes through continuous investment in the future.

According to the investment industry on Wednesday, Genesis PE will complete the payment of acquisition price for some of the old GS Elevator shares to GS Engineering & Construction on the same day. If the acquisition of old shares and future acquisition plans are included, the total investment is estimated to be around 100 billion won. GS Engineering & Construction, which is 100 percent of the existing shareholder, will continue to be a shareholder of GS Elevator.

GS Engineering & Construction is known to have discussed in earnest a plan to sell its stake in GS Elevator in the second half of this year. Genesis PE secured the investment after competing with overseas strategic investors.

Genesis PE judged that there is a high possibility that the domestic elevator market will continue to grow. Korea is one of the countries with the largest distribution of elevators per population. The size of the related market is estimated at 4 trillion won.

The annual average growth rate of the domestic elevator market is about 7%. Market growth is driven by replacement and O&M demand for existing elevators.

Genesis PE aims to grow jointly with existing domestic companies, rather than aiming to become the No. 1 player in the market. Hyundai Elevator, ThyssenKrupp Elevator, and Otis Elevator are dominating the domestic elevator market. GS Elevator is known to be the fifth largest company after Mitsubishi Elevator.

The company plans to focus on the Vietnamese market overseas. GS Elevator is the only foreign elevator manufacturer with production facilities inside Vietnam. As a result, the company is considered highly competitive in the Vietnamese elevator market.

Genesis PE will also push for development of new elevator technologies through continuous investment. The main targets are eco-friendly technologies such as artificial intelligence (AI) and circular economy themes. Through this, the company plans to strengthen its competitiveness in the O&M field.

Genesis PE is expected to strengthen cooperation with GS E&C. At the end of last year, the company invested 100 billion won in Energy Materials, GS E&C's waste battery recycling company.

Genesis PE is evaluated as a leading house in domestic trends in investment in the environment and energy sectors. Recently, it also sold portfolios of recycling companies, including KJ Environment, to EQT Partners for more than 1 trillion won.

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