Hankook Tire has announced it will acquire a 75 percent equity stake of high-tech digital prototype company ‘Model Solution Ltd’ for 68.6 billion KRW (approximately $63.6 million USD).
Hankook Tire plans to incorporate Model Solution as an affiliate company by taking over a total of 75 percent share, which consists of 51 percent stake from a U.K. electronics company Laird and 24 percent stake from a global private equity firm Crescendo Equity Partners.
Model Solution, founded in 1993, designs and manufactures prototypes and molds for IT equipment such as electronic and medical devices. Model Solution began its work in prototype solution services in 2007 and currently has more than 420 clients globally. The company possesses the best technical and design skills in the industry to provide topnotch design and prototyping support. Moreover, it is leading the prototype industry by constantly developing high-tech skills such as 3-D printing.
The acquisition is in line with Hankook Tire’s plans to strengthen investment in promising technologies and secure new growth engine through M&A of high-tech corporations. Combined with processing techniques of Hankook Tire’s affiliate M&K Technology, a super-size mold equipment company, the synergy of acquiring Model Solution is expected to be maximized.
Along with the takeover, Hankook Tire says it aims to solidify its new growth system with focus on technology, brand and network for growth in quality and strengthening of its competitiveness.
