Viatron looks to M&A in semiconductor and battery sectors
From startups to listed companies
Display heat treatment equipment maker Viatron Technologies is looking to acquire companies in the semiconductor and battery equipment industry for new growth, the company said on Thursday.
KOSDAQ-listed companies as well as startups were all potential candidates, a company spokesperson said.
One of the companies under consideration post tens of billions of won in sales a year, they said, and Viatron will consider profitability and debt of the candidates before making an acquisition offer.
Viatron will use its 90 billion won in retained earnings for the acquisition. All of the earnings won’t be used, the spokesperson said.
If the company acquires a semiconductor company, there will be synergy with its existing business.
Viatron formed a semiconductor business team in the first half of 2020. The team plans to unveil a newly developed equipment within the year. The equipment will replace formerly imported ones.
The semiconductor business will contribute to sales starting in late 2021, the company said.
Results of the acquisition plan is expected to be unveiled within the year or early next year at the latest.
This is due to most companies being cash-strapped from the impact of the COVID-19 pandemic.
Viatron was also looking for startups with technology.
Meanwhile, besides Viatron, companies in the display equipment industry are looking for new growth engines as major clients LG Display and Samsung Display are reducing their investments into the sector.
Viatron posted 100.7 billion won in sales in 2017 and 129.1 billion won in 2018. But his dropped to 49.9 billion won in 2019. Operating profit rate was 20.7% in 2017 and 22.6% in 2018, but this fell to 7.6% in 2019.
The company’s heat treatment system is used to manufacturer back planes on displays. It posted 5.4 billion won in operating profit and 27.5 billion won in sales in the first half of 2020, an increase of 52% and drop of 21%, respectively, from a year ago.
The company signed two contracts with CSOT, each worth 39.7 billion won and 5.4 billion won, and two more with BOE, each worth 14.6 billion won and 94.4 billion won.