Seoul – Hankook Tire has acquired a 75% stake in digital prototype company Model Solution Ltd for KRW68.6 billion (€53.7 million), the South Korean tire maker announced 10 May.
Hankook intends to incorporate Model Solution as an affiliate, and is buying 51% stake from UK electronics company Laird and 24% stake from private equity firm Crescendo Equity Partners.
Also based in Seoul, Model Solution designs and manufactures prototypes and moulds for IT equipment such as electronic and medical devices.
The company began its work in prototype services in 2007 and currently has over 420 clients globally.
The acquisition is part of Hankook’s plans to strengthen investment in “promising technologies” and secure new growth engines through M&A of high-tech corporations.
Hankook said it plans to combine Model Solution’s expertise with the processing techniques of its M&K Technology unit.
A Hankook affiliate, MK Technology produces and sells tire moulds and precision machine parts in South Korea.
MK Technology’s product portfolio covers tire moulds, containers for tire-curing press machines, and precision parts for various areas.
The link-up said the tire maker, would create a “super-size” mould equipment company.