SEOUL, AJU - SKC, a leading polyester film and chemical material manufacturer in South Korea, signed a deal to acquire KCF Technologies (KCFT), a leading producer of copper foil for lithium-ion batteries.
SKC, affiliated with the SK Group which is investing heavily in batteries for electric vehicles, said in a regulatory filing Thursday that it would buy a 100 percent stake in KCFT from Kohlberg Kravis Roberts, a U.S-based private equity fund, for 1.2 trillion won ($1.01 billion).
The company said it has signed a sales and purchase agreement (SPA) after its board approved the deal, which underlines SKC’s campaign to diversify its business portfolio into mobility, semiconductors and eco-friendly businesses.
SKC said it has selected copper foil, a key material used for secondary battery cathode, as a future growth engine, considering its growth, profitability and market size. “The acquisition will serve as a catalyst for SKC’s Deep Change to enhance corporate value and strengthen the competitiveness of the Korean material industry,” said SKC CEO Lee Wan-jae.
KCFT was created in March 2018 when LS Mtron’s copper foil and thin film business was spun off. Its clients include top battery makers in South Korea and other countries. SKC vowed to triple the production capacity of copper foil and develop thinner products.