Chungho Nais, one of South Korea's leading home appliance rental companies, is being acquired by the prominent U.S. private equity firm The Carlyle Group.
Carlyle announced on June 8 that it has signed a definitive agreement to acquire a 100% stake in Chungho Group. Capital for the transaction will be drawn from investment funds affiliated with Carlyle Asia Partners (CAP). Financial terms of the deal were not officially disclosed, but industry sources estimate the transaction value to be just over 1 trillion krw (approximately $750 million to $1 billion).
The buyout encompasses the entirety of Chungho Group's operations. This includes the flagship rental arm Chungho Nais, the specialized water filter manufacturer Microfilter, and the components manufacturer MCM. To secure the acquisition, Carlyle reached a mutual agreement with Chungho's controlling shareholders.
Founded in 1993, Chungho Nais has built a robust business model centered on the rental and servicing of water purifiers and air purifiers. Following the passing of founder Chung Hui-dong in July last year, his widow, Chairwoman Lee Kyung-eun, has been leading the group. Chairwoman Lee and her son, Chung Sang-hoon, have reportedly pursued the divestment to secure the necessary liquidity to cover an inheritance tax bill estimated at around 300 billion krw.
The acquisition is expected to mark a new chapter of growth for Chungho Nais under Carlyle's stewardship. Carlyle has pledged to commit additional capital to bolster Chungho's brand presence and product development, ensuring a seamless continuation of high-quality service for its customer base. John Kim, Managing Director and Head of Carlyle Korea, emphasized that the firm intends to leverage its deep operational expertise and global network to solidify Chungho's market position and drive its next-generation growth.
“Through this partnership with Carlyle, we will honor the legacy of the late Chairman Chung Hui-dong while continuing to innovate,” said Chairwoman Lee Kyung-eun. “We are confident this transition will create even greater value for both Chungho Group's loyal customers and our dedicated employees.”
The transaction remains subject to customary regulatory approvals and is anticipated to close in the third quarter of this year.
