Hankook & Company, the holding firm of Korea’s leading tire manufacturer Hankook Tire & Technology, said Monday it has completed the acquisition of Seoul-based automotive solutions provider Hanon Systems, marking its entry into the nation’s top 30 conglomerates.
With this acquisition, the company has expanded its global assets to approximately 27 trillion won ($18.4 billion), securing its position on the top 30 conglomerate list by asset valuation for the first time. According to data from the Fair Trade Commission, it was ranked 49th as of May last year.
Hankook & Co. purchased shares worth 1.8 trillion won in Hanon Systems, increasing its ownership stake to 54.77 percent. This acquisition deal comes a decade after Hankook & Co. first invested in the solutions firm.
“Through this mega deal, we have completed our mobility portfolio encompassing tires, batteries and thermal management, moving forward as a global high-tech company,” said a Hankook & Co. official, adding that the two companies aim to create synergies by sharing their global networks and integrating supply chain management capabilities.
Founded in 1986, Hanon Systems started off as an auto parts maker and ventured into thermal management systems for electric vehicles in 2015. It currently supplies thermal control solutions to auto giants such as Hyundai Motor Company, Kia, Ford Motor Company and General Motors.
In line with its Hyundai Motor and Kia’s production expansion in the North American EV market, Hanon Systems is setting up two US bases in Tennessee and Georgia while operating three manufacturing plants in Ohio, Alabama and Michigan, according to an official from Hanon Systems. In particular, its Georgia plant in Statesboro city is located 56 kilometers from Hyundai Motor’s newly built EV plant in Bryan County.
Hanon Systems also announced earlier in the day that Hankook & Co. Vice Chairman Lee Soo-il, the former CEO and president of Hankook Tire, has been appointed as the new CEO. Lee recently led the postmerger integration task force for Hankook & Co. and Hanon Systems.
Lee is recognized for his extensive experience in major markets across the US, Europe and Asia, having held key positions, including head of the Jeddah branch in Saudi Arabia, director of the French subsidiary, head of the US regional headquarters, head of the China regional headquarters and marketing division director. Notably, Lee demonstrated exceptional leadership, playing an instrumental role in contributing Hankook Tire to achieving record-breaking annual sales and operating profit in 2023, the company said.
Following Lee’s appointment as CEO, Hanon Systems has agreed to change its existing executive officer system to CEO-led management. In 2015, Hanon Systems implemented the executive officer system to separate the board of directors from management to ensure a joint management structure with Hahn & Company, a private equity firm in Seoul, which had held the majority stake in the solutions provider.
By Byun Hye-jin (hyejin2@heraldcorp.com)
