[THE INVESTOR] Korea’s LS Group said on July 27 it has signed a package deal worth 1.05 trillion won (US$923.6 million) with global investment firm KKR to sell a part of its electrical auto parts business and copper foil business. 

Under the agreement, KKR and LS Group affiliate LS Mtron will invest to create a new joint venture and acquire the business of LS Automotive from the Korean conglomerate.

In a separate deal, KKR will buy full ownership of LS Mtron’s copper foil and flexible copper clad laminate business for electric vehicle batteries.

LS Automotive will remain as an affiliate of LS Group as it will maintain control of the JV with 53 percent stake.

LS plans to use the cash from the deal to make investments in its key businesses such as electricity, infrastructure and energy.

“This partnership provides a terrific opportunity for LS Group to align and strengthen its focus on the core businesses. We are very pleased to enter into a partnership with KKR with significant industry and operational experience, and work alongside the team to achieve growth in the future,” Lee Joon-woo, senior vice president of LS Corp., said.

Established in 1973, LS Automotive is a leading auto parts company in Korea that has successfully established globally competitive positions in high-growth auto component segments including switches, interior lamps and human machine interface systems, and electrical and electronics components.

“We are very excited to partner with LS Group and the management s and employees of LSA and the copper foil and flexible copper clad laminate business to support their innovation and growth as the automotive industry continues to evolve rapidly as the adoption of EVs expands,” said Lim Hyoung-seok, managing director of KKR,

The copper foil and flexible copper clad laminate business manufactures and sells copper foils for large capacity lithium-ion batteries for primarily EVs. The copper foil business for EV battery applications is expected to be among the fastest-growing segments of the auto industry due to rising demand for eco-friendly transport.

By Park Han-na (hnpark@heraldcorp.com)