Exclusive: Veolia sells R&E to Bricks Capital in deal worth about W70b

Global environmental services firm Veolia Industrial Development Korea is selling R&E, a company that recycles artificial marble waste.

According to investment banking industry sources, Veolia signed a share purchase agreement Monday to sell its entire 100 percent stake in R&E to private equity fund manager Bricks Capital. The deal is valued at around 70 billion won ($52.9 million).

Veolia appointed BDA Partners as the sale manager earlier this year and formally launched the divestiture process, selecting Bricks Capital as the preferred bidder in late July. The final contract was signed roughly three months after that designation.

Veolia first acquired a 60 percent stake in R&E in 2019, securing management control, and later bought the remaining 40 percent to make it a wholly owned subsidiary. The deal marks a full exit from the investment approximately seven years after the initial acquisition.

The preliminary bidding round drew competition from three to five financial and strategic investors. R&E's appeal lay in its established share of the artificial marble waste recycling market and its operating profit margin of around 20 percent.

R&E operates a distinctive dual-revenue business model. It first collects processing fees when it takes in waste generated during the manufacturing and fabrication of artificial marble. It then subjects that waste to high-temperature crushing and pyrolysis to produce recycled methyl methacrylate (rMMA) and alumina, which it sells for a second stream of revenue. The structure lets the company capture the benefits of both waste treatment and recycled materials manufacturing simultaneously.

On the production side, R&E operates its main factory in Changwon, South Gyeongsang Province, along with facilities in Oksan, North Chungcheong Province, and Haman, South Gyeongsang Province. It sources raw materials through a network of major domestic manufacturers and fabricators, commanding the bulk of the artificial marble waste processing market and holding relevant technology patents.

Recent financial results, however, show signs of strain. Sales grew only marginally, from 13.5 billion won in 2024 to 13.7 billion won in 2025, while operating profit fell from 3.1 billion won to 2.8 billion won over the same period. Cash flow from operating activities also declined, dropping from 3.45 billion won in 2024 to 2.31 billion won in 2025.

Bricks Capital, which is acquiring R&E, is a young private equity fund manager founded in 2022. It is co-led by Kim Sae-han-sol, who built hands-on experience in the battery and electric vehicle industry at LG Energy Solution and Apple, and Kang Hun-gu, who comes from Goldman Sachs and IMM Private Equity. The firm operates out of Seoul and Silicon Valley, focusing on advanced manufacturing and sustainable industries.

With North American battery technology companies Sion Power and Mitra Chem already in its portfolio, Bricks Capital is using the R&E acquisition to extend its investment reach from batteries and advanced materials into the eco-friendly resource-recycling sector. The move signals the firm's intent to build a stronger foundation for broader investment in recycled materials.