Korea and Company Group announced on the 6th that it has completed the acquisition of Hanon Systems, the world's second-largest automotive thermal management solutions corporation.
Korea and Company Group acquired 144,692,552 shares in a capital increase of Hanon Systems on the 24th of last month. On the 3rd of this month, it purchased 122,774,000 shares of Hanon Systems from Korea and Company, raising its stake to 54.77% and completing the acquisition. This marks the first time in over 10 years since Korea and Company Group participated as an investor by securing a 19.49% stake in Hanon Systems in 2014, and it has been 8 months since the acquisition decision last May.
A representative from Korea and Company Group said, "This acquisition has increased the total assets to about 27 trillion won, allowing us to enter the top 30 groups in the business community based on fair asset standards."
Hanon Systems is an automotive parts company established in 1986 under the name Halla Climate Control. It changed its name to Halla Visteon Climate Control in 2013. In 2015, Hanon & Company and Hankook Tire Technology (Hankook Tire) became the first and second largest shareholders, acquiring its current name. In 2023, it achieved its highest-ever performance with a revenue of 9.5593 trillion won and an operating profit of 277.3 billion won.
With the acquisition of Hanon Systems, Korea and Company Group now possesses unique technology in battery thermal management systems, establishing itself as a comprehensive automotive parts corporation. Over the past 10 years, Korea and Company Group reportedly enhanced its understanding of Hanon Systems as an investor and verified the synergy potential in tires, batteries, and thermal management before proceeding with the acquisition.
Following this acquisition, Korea and Company Group aims to maximize synergy through resource and technology integration. It plans to utilize the global sales network of Hanon Systems and consolidate supply chain management (SCM) capabilities, including raw materials. Korea and Company Group stated, "This acquisition will serve as an opportunity for the technological prowess and capabilities of Hanon Systems to emerge as a greater force."
Korea and Company Group also elected Lee Soo-il, vice chairman of Hankook Tire, as the new CEO of Hanon Systems during a board meeting on the 3rd. The new CEO joined Hankook Tire through an open recruitment process in 1987 and became an executive as the marketing director in 2006. He has held several positions, including head of the Americas and China headquarters and head of marketing, before being appointed as president and CEO of Hankook Tire in 2018 and promoted to vice chairman early last year.
This new CEO had previously served as the Director General of the integration team for the acquisition of Hanon Systems by Korea and Company Group.
The new CEO stated in his inauguration speech, "I will do my best to enhance the operational efficiency of Hanon Systems and strengthen its global competitiveness," adding, "Let us grow into the world's number one climate control system company with a challenging attitude."