Key Takeaways
- • Affinity Equity Partners, a Hong Kong-based private equity firm, is undergoing internal investment review to acquire Toray Group's secondary battery separator business, valued at approximately 1 trillion won ($750–800 million USD equivalent).
- • The acquisition target encompasses Toray's entire domestic and international separation membrane operations, including facilities in Gumi (South Korea), Europe, and a joint venture plant in Hungary established with LG Chem.
- • Affinity has engaged JP Morgan as the sale organizer and appointed a global professional consulting firm to assess the separation membrane market and enhance post-acquisition corporate value strategy.
- • Multiple international private equity firms, including Australian Macquarie Asset Management, received investment memoranda but Macquarie has withdrawn from the bidding process, leaving Affinity among active contenders.
- • The transaction represents a significant infrastructure investment in battery separator technology, a critical component for the electric vehicle and energy storage supply chains.
Summary
Hong Kong-based private equity fund Affinity Equity Partners has emerged as a leading candidate to acquire Toray Group's secondary battery separator membrane business, valued at approximately 1 trillion won. The transaction, facilitated by JP Morgan, represents a strategic consolidation of critical battery component manufacturing amid rising demand for electric vehicle infrastructure.
Affinity is currently conducting internal investment review procedures for the acquisition. The target assets include Toray's complete domestic and international separation membrane operations, spanning multiple jurisdictions and production facilities. The portfolio encompasses a separation membrane plant in Gumi, South Korea; European manufacturing operations; and a joint venture production facility in Hungary that Toray established in partnership with LG Chem. According to investment banking sources, Affinity has retained a leading global professional consulting firm to conduct comprehensive market analysis of the separation membrane sector and identify value-creation opportunities post-acquisition.
Toray has circulated investment memoranda to multiple prospective bidders through JP Morgan's sale process. While several major private equity investors received offering documents, including Australian asset manager Macquarie Asset Management, Affinity currently represents the most active bidder in the process. Macquarie reportedly withdrew from the acquisition process following its initial review period.
The transaction underscores institutional investor appetite for consolidated positions in battery supply chain infrastructure. Separation membranes represent a critical, capital-intensive component in lithium-ion battery manufacturing, with limited global suppliers and sustained demand from automotive electrification and stationary energy storage sectors. A successful acquisition by Affinity would position the firm as a significant operator in this specialized industrial segment.
Affinity is currently conducting internal investment review procedures for the acquisition. The target assets include Toray's complete domestic and international separation membrane operations, spanning multiple jurisdictions and production facilities. The portfolio encompasses a separation membrane plant in Gumi, South Korea; European manufacturing operations; and a joint venture production facility in Hungary that Toray established in partnership with LG Chem. According to investment banking sources, Affinity has retained a leading global professional consulting firm to conduct comprehensive market analysis of the separation membrane sector and identify value-creation opportunities post-acquisition.
Toray has circulated investment memoranda to multiple prospective bidders through JP Morgan's sale process. While several major private equity investors received offering documents, including Australian asset manager Macquarie Asset Management, Affinity currently represents the most active bidder in the process. Macquarie reportedly withdrew from the acquisition process following its initial review period.
The transaction underscores institutional investor appetite for consolidated positions in battery supply chain infrastructure. Separation membranes represent a critical, capital-intensive component in lithium-ion battery manufacturing, with limited global suppliers and sustained demand from automotive electrification and stationary energy storage sectors. A successful acquisition by Affinity would position the firm as a significant operator in this specialized industrial segment.
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