MECARO, a semiconductor parts company listed on KOSDAQ MECARO(241770), decided to acquire Samiltech, an unlisted company that produces semiconductor equipment. With earnings improving sharply on the back of the recent semiconductor supercycle, some said MECARO is actively expanding its business scope.
MECARO said on the 15th that its board of directors resolved to sign a stock purchase agreement to acquire 100% equity in Samiltech Co., Ltd. The total acquisition price is about 35.6 billion won, and the company plans to pay the full amount on the 31st in cash on hand without separate borrowing or a new share issuance.
The company said, "This is a strategic decision by MECARO to expand adjacent technologies and manufacturing capabilities based on its existing semiconductor parts business," adding, "It is not simply to expand the equipment lineup, but a decision made after highly valuing Samiltech's technology to stably and repeatedly manufacture precision equipment, the trust built over many years with customers, and the execution capabilities that have flexibly responded to industry-specific demands."
Samiltech develops and produces equipment for semiconductor manufacturing and process automation. It has expanded its production range to special-purpose automation equipment in various fields, including back-end semiconductor packaging equipment, automotive parts assembly equipment, connector assembly equipment, and suture molding equipment in healthcare.
Given the nature of its order-based equipment business, Samiltech's results fluctuate widely year to year, but it is assessed to have a stable financial structure as it holds cash and cash equivalents of 13.3 billion won.
In addition to acquiring Samiltech, MECARO is preparing an investment in another unlisted company, Lambda Micro. MECARO said it will acquire a total of 14.1 billion won in Lambda Micro convertible bonds (CB), including the portion already executed and the additional investment scheduled for this year.
Lambda Micro produces heat-treatment equipment based on variable frequency microwave (VFM) technology. This equipment is used in back-end semiconductor processes and secondary battery manufacturing processes.
MECARO, with a market cap of 300 billion to 400 billion won, is able to push for expansion by deploying considerable cash thanks to improved earnings from the semiconductor supercycle. After recording a full-year loss in 2023, MECARO turned profitable in 2024, and last year its operating profit rose by nearly 300% on increased overseas sales and the effect of a weaker won (exchange rate).
Last year, MECARO's sales neared 100 billion won and operating profit came to 15.3 billion won. It counts Samsung Electronics(005930) and SK hynix(000660) as customers, and more than half of last year's sales came from China in particular. As of the end of last year, the company's cash and cash equivalents exceeded 54 billion won.