LG Electronics Acquires Lighting Company ZKW Group

5/31/2018 1:59 PM 

In a deal worth more than €1.1 billion, LG Electronics recently approved the acquisition of automotive lighting and headlight systems provider ZKW Group. LG notes that this is its largest acquisition to date. Under the terms of the transaction, LG Electronics will acquire a 70 percent stake in ZKW Group, with parent company LG Corp. purchasing the remaining 30 percent.

ZKW is an Austrian company that focuses on premium vehicle components and related accessories. It has a market presence in Europe, China, Mexico, and the US, and is one of the first companies worldwide to produce matrix LED headlamps and laser headlights.

The merger is expected (says LG) to result in synergies that allow the combined companies to lead the global lighting sector in autonomous vehicle components. ZKW had revenues of €1.26 billion in 2017 and has enjoyed an average annual sales growth rate of more than 20 percent over the past five years. ZKW products are used in European automotive brands including Audi, BMW, Porsche. and Daimler, among others. According to LG, the Austrian company’s offerings will specifically complement LG's growing vehicle components operations, which is designed to serve a premium automotive lighting segment that LG predicts will expand faster than traditional auto lighting.

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