$1.3 billion! SKC to sell film business with more than 40 years of production experience, involving factories in China!
Latest News: On June 8th, SKC held a board meeting and decided to split and sell the thin film business.
The company signed a stock purchase and sale contract.
The deal is between SKC’s film business unit and film processing subsidiary SKC
hi-tech & marketing and factories in the United States and China, the contract value is 1.6 trillion won (about 1.3 billion US dollars). SKC will complete the transaction in the fourth quarter after completing the necessary procedures such as the general meeting of shareholders and business division.
SKC Film Business
Founded in 1976, SKC is the first company in Korea to develop and manufacture products in the fields of thin films, chemicals and materials.
SKC’s thin film business mainly produces advanced IT equipment and industrial products such as displays and mobile devices. Following the development of PET film for the first time in Korea in 1977, and the development of video tapes for the first time in Korea in 1980, it set a number of “firsts” records and drove the domestic film industry in Korea.
At the beginning of the 21st century, as the main product was positioned as a film for displays, it became a solid backing for the development of the industry, and recently, it has focused on cutting-edge products for mobile devices such as smartphones. Sales in 2021 will be 1.1319 trillion won (approximately US$950 million) and operating profit will be 68.9 billion won, showing an upward trend.
Reason for Selling Business
SKC decided to sell the thin film business in order to clarify its image as a global ESG material solutions company centered on secondary batteries, semiconductors, and environmental protection. Although the film business continues to grow in sales and operating profit on the basis of global competitiveness, it is not in the same strategic direction pursued by SKC. In response, SKC decided to sell the company’s thin film business to an acquirer suitable for the growth and development of the thin film business.
Company is Korea’s largest investment-only private equity fund operating company with an operating fund of approximately KRW 13.5 trillion. Since its establishment in 2010, it has acquired 30 outstanding Korean companies.
Future business priorities
The funds obtained by SKC this time will be used to invest in future growth engine businesses currently being promoted and new businesses to be added in the future.
Since 2016, SKC has promoted BM (Business
Model, business model) innovation, this decision will begin to move towards a new corporate identity of “global ESG material solutions company”.
An SKC official said, “We will establish a business structure centered on secondary batteries, semiconductors, and environmental protection, focus on investing in global expansion and future growth, and lay the foundation for Leap & Reap.” A global ESG material solutions company.”