[THE INVESTOR] Korea’s largest tire maker Hankook Tire has completed the purchase of UK digital prototype firm Model Solution, according to industry sources on June 15.
Hankook Tire recently closed the 68.6 billion won (US$62.97 million) deal for a 75 percent share in Model Solution, which consists of 51 percent stake held by UK electronics firm Laird and 24 percent of global private equity firm Crescendo Equity Partners.
The remaining 25 percent stake is held by Crescendo, which will remain as a partner after the merger. New York-based M&A advisory firm BDA Partners advised the sale.
The buyout will strengthen Hankook Tire’s plan to boost investments in cutting-edge technologies and secure new growth engines through mergers and acquisitions, according to the firm. It will also help create business synergies with MK Technology, a high-precision equipment affiliate of Hankook Tire.
Established in 1993, Model Solution designs and produces prototypes and molds for IT equipment, such as electronic and medical devices. With operations in both Seoul and Silicon Valley, it has over 420 clients globally, including Samsung Electronics, global tech giants and IT startups.
Industry watchers say the acquisition is part of the tire maker’s ambition to expand partnership with global IT firms and strengthen software offerings, through Model Solution’s extensive network.
By Ahn Sung-mi (firstname.lastname@example.org)