KKR to offload KCF Technologies to SKC for $1bn
Global investment company KKR has agreed to sell KCF Technologies (KCFT), a producer of copper foils and flexible copper clad laminates, to South Korean conglomerate SK Group affiliate SKC, for a sum of KRW1.2 trillion ($1 billion).
The copper foils and copper clad laminates manufactured by KCFT are mainly used in li-ion batteries for electric vehicle applications.
KCFT was carved out from South Korean electrical auto parts maker LS Automotive. Formerly called LS Mtron, KCFT was the copper foil and flexible copper clad laminate business of LS Automotive in which KKR completed an investment in March 2018 while acquiring the former completely.
KKR says that during its ownership, the capacity of KCFT doubled through the construction of new factories apart from its expansion outside South Korea into new markets.
The global investment company is said to have further helped KCFT and its management team in establishing all key functions to operate as an independent firm, bagging long-term supply contracts, and making important senior appointments.
Chung Ho Park and Hyoung Seok Lim – KKR Korea Managing Directors said: “We are proud to have worked with the management team and employees of KCFT to meaningfully grow the business and solidify the Company’s technological leadership over the past several years. We believe a partnership between the Company and SKC further positions KCFT for even greater success in the future.”
The sale of KCFT will be completed after receiving customary regulatory consents and approvals.