15th Apr 2014 08:34
LONDON (Alliance News) - Laird PLC Tuesday said it will buy a 51% stake in South Korean prototype design company Model Solution for about GBP20.6 million in cash.
Under the deal, Laird will team with South Korean private equity investors Skylake Consortium to buy the whole of Model Solution from Kamur Private Equity for KRW70 billion, or about GBP40.4 million. When the deal is completed, Laird will own 51% of Model Solution and Skylake 49%.
Laird expects the deal to close within two weeks and for it to be earnings enhancing in the first full year of ownership.
Model Solution specialises in designing and manufacturing prototypes with expertise in injection moulding, finishing, UV coating and 3D printing and other prototyping competencies.
"It is a further significant development for Laird as it provides a South Korean platform to service leading customers in the electronics industry and other international (original equipment manufacturers), in a key strategic market. It also allows access to a broad customer base in different market segments and complements the organic investment of capacity expansion in Vietnam, announced earlier in the year," Laird said in a statement.
Laird shares were up 1.3% at 293.5 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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