Laird Acquires Korean Prototype Manufacturing Business

Further strategic expansion of South Korean market

 

Laird PLC today announces the acquisition of 51% of Model Solution, a South Korean company specialising in prototype design, further developing Laird’s Group-wide strategy to penetrate new markets.

Laird will be acquiring Model Solution from Kamur Private Equity for KRW 70 billion (c.£40.4 million), in conjunction with South Korean private equity investors, Skylake Consortium. Following the completion of the transaction, Laird will own 51% and the private equity investors together will own 49% of Model Solution.

The acquisition will represent a cash cost of £20.6 million to Laird payable from Laird’s existing facilities. It will be consolidated and integrated by Laird from completion, and is expected to be earnings enhancing in the first full year of ownership. The transaction is expected to close within two weeks.

David Lockwood, Chief Executive, commented

“This acquisition shows our strategy at work. It allows us to further penetrate the important strategic market that is Korea, demonstrating a broader offering to customers who value the importance of innovative design and speed of delivery.”

Model Solution is a South Korean company specialising in designing and manufacturing prototypes with expertise in injection moulding, finishing, UV coating and 3D printing and other prototyping competencies. Its customer base operates across a range of markets including mobile communications/computing, other consumer electronics, audiovisual products and medical devices. Model Solution is complementary to Laird’s existing design innovation and manufacturing capabilities. Its high quality and fast turnaround prototyping ability will enhance Laird’s service to existing and new customers in their early prototyping phases. It will enable Laird to engage with the customer earlier in the design cycle.

It is a further significant development for Laird as it provides a South Korean platform to service leading customers in the electronics industry and other international OEMs, in a key strategic market. It also allows access to a broad customer base in different market segments and complements the organic investment of capacity expansion in Vietnam, announced earlier in the year.

Laird will have operating control of the business but will benefit from the investor partner, Skylake Consortium, who is able to help Laird develop significant business relationships with key Korean OEMs due to their considerable experience and market knowledge. The co-owner and Chairman of Skylake, Dr Chin, will assume the role of Chairman and David Lockwood will assume the role of Deputy Chairman. Dr Chin has previously held senior positions within Samsung Electronics and has been a Minister in the Ministry of Information and Communication for the South Korean Government.

For the year ended 31 December 2013, Model Solution’s revenues were KRW 31.4 billion (GBP 18.4 million) and operating profit was KRW 5.6 billion (GBP 3.3 million). In 2013 revenue grew by more than 20%.

For enquiries:

Laird PLC
David Lockwood, Chief Executive
Jonathan Silver, Chief Financial Officer
Anna Hartropp, Head of Investor Relations
Tel: 020 7468 4040

MHP Communications
John Olsen
Reg Hoare
Tel: 020 3128 8100

The next reporting date will be the Interim Management Statement on 2 May and AGM.

Notes to editors:

About Laird PLC 

Laird PLC is a global technology company focused on providing components and solutions that protect electronic devices from electromagnetic interference and heat, and that enable wireless connectivity through wireless applications and antennae systems.

Model Solution will complement the product offering of Laird’s Performance Materials division.

About Model Solution 

Headquartered in Seoul, Korea, Model Solution operates under the motto QUALITY delivered QUICKLY.

Model Solution works with customers around the globe as a leading partner for model making and quick-turn tooling for injection moulded parts. They are a one-stop total solutions provider for prototype and low volume parts production specialising in small to medium-sized products across a broad range of industries including mobile communications/computing, other consumer electronics and audiovisual products, medical devices, and others.

With a number of highly experienced employees working from three modern facilities with state-of-the-art equipment in the heart of Seoul, Model Solution has been meeting the demanding needs of their customers and is dedicated to delivering the highest quality products within tight timeframes and to working closely with customers to proactively resolve any issues that may arise.

For the financial year ended 31 December 2013, Model Solution reported audited gross assets of KRW 38.1 billion (GBP 22.0 million) and reported PBT of KRW 7.8 billion (GBP 4.6 million). The business is acquired on a debt free and cash free basis.

http://www.model-solution.com/eng/

About Skylake 

Skylake Investment & Co. was founded in 2006, and is an alternative asset management firm that manages private equity investments. The firm is under supervision of the ‘Financial Supervisory Service’ governed by the “Capital Market and Financial Investment Law Article 268” of South Korea. Skylake invests in companies with high growth potential in information and communications technology (ICT) and ICT convergence sectors.

Other 

The shareholder agreement entered into by Laird and Skylake Consortium, as is customary, contains exit provisions allowing either party to exit under certain circumstances.

About Laird

Laird is a global technology business focused on enabling wireless communication and smart systems, and providing components and systems that protect electronics. Laird operates through two divisions, Wireless Systems and Performance Materials. Wireless Systems solutions include antenna systems, embedded wireless modules, telematics products and wireless automation and control solutions. Performance Materials solutions include electromagnetic interference shielding, thermal management and signal integrity products. As a leader in the design, supply and support of innovative technology, our products allow people, organisations, machines and applications to connect effectively, helping to build a world where smart technology transforms the way of life. Custom products are supplied to major sectors of the electronics industry including the handset, telecommunications, IT, automotive, public safety, consumer, medical, rail, mining and industrial markets. Providing value and differentiation to our customers through innovation, reliable fulfilment and speed, Laird PLC is listed and headquartered in London, and employs over 9,000 people in more than 58 facilities located in 18 countries.

Trademarks

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