Glenwood Private Equity (PE) has been selected as the preferred bidder for an acquisition of LG Chem's diagnostic division, a pharmaceutical industry official said. 

LG Chem's diagnostics division operates various diagnostic reagents and polymerase chain reaction (PCR) equipment to test for allergic reactions and respiratory viral infections.

According to the official, who wished to remain anonymous, Samjung KPMG is leading the sale of LG Chem's diagnostics division. The accounting and consulting firm notified Glenwood PE of its selection as the preferred bidder on Tuesday, he said. 

The sale price is rumored to be around 120-150 billion won ($89.7 million), local news reports said. 

Glenwood PE laid out a blueprint to increase LG Chem diagnostics unit's research and commercialization capabilities by purchasing more biotech startups with new investments, they said.

Earlier, four companies, including Glenwood PE, Korea Investment PE, E-um PE, and IGIS Investment Partners, were named in the main bidding for the acquisition of LG Chem's diagnostic division.

Korea Investment PE formed a consortium with PCL, an in vitro diagnostics company, and IGIS formed a consortium with Lab Genomics, a gene molecular diagnostics company.

PCL attracted attention because a former CEO of LG Chem was the founder of PCL. However, LG Chem chose Glenwood PE because the latter has extensive experience in dealing with large companies and had revealed plans for further investment as the preferred bidder.

According to industry watchers, LG Chem decided to sell the non-core diagnostic business. While LG Chem's revenue exceeded 51 trillion won in 2022, that of diagnostic unit marked less than 40 billion won.