CEO : Yoon Chun Sung
LX International, 58, Saemunan-ro, Jongno-gu, Seoul, 03184, Korea
COPYRIGHT©2021 BY LX International Corp.
- LX decides to acquire 100% stake in Hanglas for KRW 592.5 billion
- Company is poised to enter the glass market as it is expected to record rapid growth, to secure an additional revenue stream
- LX will gain a foothold to break into diverse markets for green and cutting-edge materials
LX International has announced to acquire 'Hanglas'. This deal will allow the company to gain a foothold for stable revenue streams and lay the groundwork to reach out to diverse fields of materials.
LX International held a board meeting at its headquarters located in Saemunan-ro, Jongno-gu, Seoul on the March 30th and announced that it had approved a bill to acquire a 100% stake in Hanglas owned by Korea Glass Holdings for KRW 592.5 billion. Korea Glass Holdings is a company designed to serve special purposes established by Glenwood PE, a Korean private equity fund (PEF) manager.
In December last year, LX International signed a memorandum of understanding (MOU) with Glenwood PE to acquire Hanglas. After three months of due diligence, the two companies will sign a share purchase agreement on March 31st.
■ LX acquires a leading company renowned for its eco-friendly technology in the glass industry… creating a bedrock for stable revenue
Hanglas is a glass manufacturer, occupying the second largest market share in Korea. Founded in 1957, it holds the longest history among Korean glass manufacturers. Its primary business focus is on manufacturing and selling flat glass and coated glass, which is mainly used for windows of commercial and residential buildings.
Hanglas holds outstanding technological prowess and a stable position in the domestic glass market. Due to its manufacturing capabilities built over many years, Hanglas also exhibits excellent growth potential to extend further into new product fields.
The company especially has leading technology in environmentally sustainable, high-profit margin coated glass. Among its product lineups, double low-e glass products that ensure ultimate quality holds a competitive edge in all aspects, including energy-saving, shielding effectiveness, and cost. Low-e glass is an energy-efficient glass product that is coated with silver on one side to upgrade insulation, and is expected to record rapid growth.
Glass is an essential source material used across all key industries such as construction, automobiles, and IT, and is a highly attractive industry projected to experience stable growth in demand due to extending supply for construction and remodeling.
This is why LX International has selected the glass industry as its new sustainable field of business and decided to acquire Hanglas for its outstanding technological prowess, as part of its endeavors to build momentum to branch out into a broad spectrum of material markets and secure an additional source of revenue.
Hanglas earned 310 billion KRW in sales and 36.5 billion KRW in operating profit last year, and is expected to gain increased profits in line with the market growth.
An official from LX International explained, "Acquiring Korea Glass Industry, which holds a competitive edge in production and quality, means reaching a stable position and revenue streams in the domestic glass market with high growth potential at one sweep."
■ After the acquisition, the value of Hanglas is expected to rise, gaining a foothold to reach out to various material industries
After the acquisition, LX International will focus on enhancing the corporate value of Korea Glass Industry.
Like other industries, since it is growing important to manage the global supply chain in the glass industry, LX International will leverage its sourcing capability to help Hanglas to upgrade its competitive edge.
Furthermore, the company will forge ahead with its investment in eco-friendly, high-efficiency facilities and smart factories to further enhance its ESG competitiveness. It is part of its plan to lay the groundwork for sustainable growth through its entry into the glass field.
Chun-Sung Yoon CEO of LX International, said, “The acquisition of Hanglas has a good implication as it will serve as a staging ground for another stable revenue stream to hedge against the revenue variance in our existing resource business and for entry into a wide array of material industries such as eco-friendly and high-tech industries” and “LX International will continue to improve its business values and scout for new growth engines.”
Gunsan Plant of Hanglas