LG completes record acquisition of lighting company ZKW Group
$1.3bn (EUR1.1bn) deal is LG’s largest in its 60 Year History
LG Electronics (LG) has announced the acquisition of automotive lighting and headlight systems provider ZKW Group, capping a deal worth more than EUR1.1bn, LG’s largest acquisition to date.
Under the terms of the transaction, LG Electronics will acquire a 70% stake in ZKW Group with parent company LG Corp. purchasing the remaining 30%.
The strategic merger is expected to result in synergies that allow the combined companies to lead the global lighting sector in autonomous vehicle components.
Headquartered in the Lower Austrian town of Wieselburg, ZKW Group is a renowned manufacturer of automotive lighting systems with a presence in markets throughout Europe in addition to China, Mexico and the United States.
With revenues of EUR1.26bn in 2017 and an average annual sales growth rate of more than 20% over the past five years, ZKW products are found in many major automotive brands.
ZKW’s offerings will complement LG’s growing Vehicle Components operations which expects the premium automotive lighting segment to expand faster than traditional auto lighting.
Jo Seong-jin, chief executive officer of LG Electronics. “In addition to strengthening ZKW’s product development capabilities, LG’s global production experience and international business network will present unlimited opportunities for both companies in the auto market of tomorrow, which includes intelligent lighting solutions.”