LS Group‘s U.S. subsidiary, Essex Solutions, announced on January 6 that it has successfully raised $200 million (approximately KRW 290 billion) in a pre-IPO funding round. The investment was led by the Mirae Asset–KCGI Consortium through a third-party allocation of newly issued shares.

This investment gives the Mirae Asset-KCGI Consortium a 20% stake in Essex Solutions, valuing the company at approximately $1 billion (KRW 1.45 trillion) pre-IPO. The pre-IPO, directly managed by LS Group, attracted competitive bids from top investment firms, including Bain Capital, Goldman Sachs, and IMM.

Originally founded in 1930 as Essex Wire Corporation, a U.S. wire manufacturer, the company rebranded to Superior Essex (SPSX) in 1954 after acquiring a telecommunications wire business. In 2008, LS Group acquired SPSX for approximately $770 million (KRW 1 trillion). The company turned profitable in 2016, enabling steady R&D investments to prepare for the electric vehicle era.

In 2020, SPSX formed a joint venture, Essex Furukawa Magnet Wire (EFMW), with Japan’s Furukawa Electric to strengthen its position in the global magnet wire market. This partnership created synergies in technology, production capacity, networks, and branding. In April 2024, SPSX acquired Furukawa Electric’s entire stake in EFMW, vertically integrating its magnet wire operations and rebranding as Essex Solutions. This transformation positioned Essex Solutions as the world’s leading magnet wire company, with strong market presence in North America, Europe, and Asia.

Essex Solutions focuses on two key product categories: ‘specialized magnet wire for electric and hybrid vehicles’ and ‘specialized magnet wire for large-capacity transformers’. Its EV magnet wire, a critical material for electric motor drives, requires advanced technology to withstand high voltages, an area where Essex Solutions holds a global leadership position.

Thanks to its technological edge, Essex Solutions supplies its products to the world’s leading EV manufacturers and major global automakers known for their rigorous quality standards. Outside China, the company holds the top market share in North America, the most active EV production region. It also operates production facilities across North America, South America, Europe, and Asia, enabling it to respond flexibly to regional trade protection policies.

Essex Solutions aims to capture 70% of the North American EV magnet wire market and over 50% of the European market within the next five years.

LS Group plans to complete its selection of underwriters by early 2024 and proceed with a full-scale IPO by 2025. While initially considering a KOSPI listing, the group is now exploring a Nasdaq IPO due to strong interest and support from U.S. investment banks.

An LS representative stated, “The successful pre-IPO of Essex Solutions highlights the market’s recognition of its future potential in the electric vehicle and power supercycle era. The company will continue to lead the magnet wire industry through sustained R&D investment and its unmatched technological advantage.”