“We will become the world’s top electronic materials manufacturer like Germany-based BASF”; Cheil Ind acquires Novaled to be global leader in electronic materials

October 21, 2013 Leave a comment

Cheil Ind acquires Novaled to be global leader in electronic materials

Sohn Jae-gwon

2013.10.21 14:45:20

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“We will become the world’s top electronic materials manufacturer like Germany-based BASF and Merck.” Cheil Industries recently sold its fashion unit to Samsung Everland, aiming to grow into a company specializing in producing electronic materials. Park Jong-woo, CEO of Cheil Industries, and Gildas Sorin, CEO of Novaled, as well as other 100 members of both companies attended a ceremony for Cheil Industries’ acquisition of Novaled, Cheil Industries said Sunday. CEO Park said “Novaled’s technological competence in OLED will take on a major role in the Cheil Industries’ cutting-edge material business” at the ceremony. “I will spare no investment and support to develop products that will set global trends.” The acquisition was valued at 345.5 billion won ($325.2 million), the largest among all merger and acquisition deals reached by Samsung Group’s subsidiaries. The South Korea-based company went out of its way to acquire Novaled with cash by issuing commercial paper for short-term financing. Novaled is a global top-notch provider of OLED materials and over 60 percent of its employees have diplomas of Master’s degrees or higher and work at the research and development (R&D) department. Novaled has made no secret of its expectation about Samsung’s investment. Cheil Industries, Samsung Electronics, and Samsung Venture Investment own a combined 100 percent stake in Novaled, yet Mr Sorin and the company’s other current management will retain their titles and R&D personnel will stay as well.

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