Hankook Tire acquires majority stake in Model Solution
By acquiring a 75 per cent equity stake in high-tech digital prototype company ‘Model Solution Ltd.’, Hankook Tire hopes to benefit from synergies gained by combining the company’s know-how with that of its affiliate, super-size mould equipment company M&K Technology. The tyre maker paid KRW 68.6 billion (£47.3 million) for the stake.
Hankook Tire plans to incorporate Model Solution as an affiliate company. The 75 per cent share consists of a 51 per cent stake from a UK electronics company Laird and a 24 per cent stake from a global private equity firm Crescendo Equity Partners.
Model Solution, founded in 1993, designs and manufactures prototypes and moulds for IT equipment such as electronic and medical devices. It began its work in prototype solution services in 2007 and currently has over 420 clients around the world. “The company possesses the best technical and design skills in the industry to provide top-notch design and prototyping support,” comments Hankook Tire. “Moreover, it is leading the prototype industry by constantly developing high-tech skills such as 3D printing.”
According to Hankook Tire, the acquisition is in line with its plans to strengthen investment in promising technologies and secure new growth engine through mergers and acquisitions of high-tech corporations. Along with the takeover, Hankook Tire aims to solidify its new growth system with focus on technology, brand, and network for growth in quality and strengthening of its competitiveness.