이 기사는 2021년 08월 18일 07시51분 thebell에 표출된 기사입니다

South Korean auto parts manufacturer DTR Automotive has agreed to acquire Doosan Machine Tools in a 2.4 trillion won ($2 billion) cash deal as it looks to new markets for future growth.

Private equity firm MBK Partners on Friday signed a deal to sell a 100% stake in the machine tool maker to DTR Automotive for 2.4 trillion won, industry sources said.

The Kospi-listed auto parts maker said in a regulatory filing on Friday that the purpose of the acquisition, which will be made through its subsidiary GMT Holdings, is to expand its business portfolio.

DTR Automotive is part of Dong Ah Tire & Rubber Group, which was founded by chairman Kim Man-soo about 50 years ago. The company was spun off from Dong Ah Tire & Rubber Co in November 2017.

The spin-off was part of the family-owned group’s succession plan. The largest shareholder in DTR Automotive is Kim’s son, Sang-hun, with a 35.3% stake. Dong Ah Tire & Rubber is 52.28% owned by chairman Kim and his specially related parties, and 12.66% owned by DTR Automotive.

DTR Automotive produces anti-vibration parts and automotive batteries, with its anti-vibration products supplied to major US and European automakers such as General Motors, Ford, Stellantis, Volkswagen, BMW and Daimler. Overseas sales account for 80% of its total sales.

The company is a late mover to the automotive battery business. But its customer base is highly diversified across geographies with exposures to Middle East, Africa and North America markets. It focuses on higher-margin aftermarket parts.

Dong Ah Tire & Rubber Group has grown through acquisitions. It acquired British auto supplier Avon Automotive’s vibration management systems business in 2009 and Italy’s CF Gomma in 2014. These cross-border deals enabled the South Korean company to expand its footprint into global markets.

The acquisition of Doosan Machine Tools will likely help DTR Automotive broaden its offerings. Doosan Machine Tools’ precision technology and DTR Automotive’s auto parts capabilities are expected to create synergies, especially in the fast-growing electric vehicle market. Doosan Machine Tools is also understood to have a strong sales network across the US, Europe and China.

DTR Automotive has sufficient capability to fund the acquisition, with earnings before interest, taxes, depreciation and amortization (EBITDA) of 111.6 billion won in 2020. Dong Ah Tire & Rubber is also expected to help fund the deal. Its EBITDA was only 20 billion won last year, but the company is said to have cash reserves of more than 800 billion won.

DTR Automotive has hired Woori Bank and Korea Investment & Securities to arrange acquisition financing, which is expected to amount to more than 1 trillion won. (Reporting by Hee-yeon Han)