- Samsung to Acquire Novaled
SEOUL, South Korea, & DRESDEN, Germany, Aug. 9, 2013 — Cheil Industries, a Samsung affiliate that supplies electronic materials to display makers, and Samsung Electronics will co-own Germany-based OLED maker Novaled AG under a deal announced Friday.
Cheil Industries will acquire a majority 50 percent stake in Novaled, while Samsung Electronics will acquire 40 percent. The transaction values Novaled at €260 million ($347 million), €30 million of which will be paid if certain conditions are met.
The remaining stake of approximately 10 percent is currently held by Samsung Venture Investment, which will maintain its shareholding. The transaction includes the shares of Novaled founding partners; the company's current shareholders are a group of financial investors and individuals.
“This marks the start of a new era for Novaled’s development both in the display and lighting markets. As 2005 lead investor in Novaled, and having contributed to the company’s key strategic decisions, we welcome the merger with Cheil Industries,” said Michel de Lempdes, partner at Omnes Capital.
“This acquisition is expected to generate significant synergy in new-generation OLED materials R&D and will play a critical role in enhancing Cheil Industries' market position as a global leader in electronic materials,” said Cheil Industries’ CEO Jong-Woo Park.
Novaled specializes in the combination of organic conductivity doping technology, proprietary materials and stack-development in the OLED field. Founded in 2001 as a spinoff of the Dresden University of Technology and the Fraunhofer Institute of Dresden in Germany, the company has more than 500 patents granted or pending; it generated revenues of €26 million in 2012.
Cheil Industries plans to grow Novaled’s existing research and development activities and to concentrate a main part of its OLED strategy in Dresden.
"Cheil Industries and Novaled are complementary — the alliance will help both parties to contribute and fully leverage its strengths for the benefit of the whole OLED industry.” said Novaled CEO Gildas Sorin.
For more information, visit: www.novaled.com
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