Hankook & Co. Group (formerly Hankook Tire Group) has acquired an additional stake in Hanon Systems, an automotive thermal and energy management solutions company.
The acquisition is set to be completed by the end of the year.
The board of directors of Hankook's tire business agreed on May 3 to acquire the 25% stake in Hanon Systems held by a private equity firm, Hahn & Co. Additionally, Hankook will acquire 12.2% of new shares that will be issued via a capital increase.
Once the acquisition is complete, Hankook will hold a 50.53% stake in Hanon Systems, which will allow it to take management rights as the primary shareholder. With this latest stake, the group will invest 2.8 trillion KRW in acquiring Hanon Systems.
The company views this deal as an important asset in anticipation of growth in electric vehicles, "conceptualizing a next-generation business model that combines global top-tier tire and automotive Thermal Management System (TMS) technologies."
Hanon Systems operates 53 production facilities in 21 countries, as well as three technology innovation centers. Hankook says it is considered the world's second-largest TMS company for EVs.
The acquisition is also expected to move Hankook into the rankings of one of South Korea's 30 largest companies, with anticipated sales of around 26 trillion KRW.
