LG Electronics announced Thursday its board of directors has approved the $1.33 billion acquisition of ZKW Group, an Austria-based automotive lighting and headlight system provider.
This is LG Electronics’ largest acquisition to date, it said.
Under terms of the deal, LG Electronics, which has its U.S. headquarters in Englewood Cliffs, will acquire a 70 percent stake in ZKW Group, while parent company LG Corp. will purchase the remaining 30 percent.
The combined companies, LG said, are expected to lead the global lighting sector in autonomous vehicle components.
ZKW products are found in many major European automotive brands, it said, including Audi, BMW, Porsche and Daimler, among others. ZKW’s lighting business, which includes halogens to LEDs, lasers and more, will have a better market presence through LG’s global sales network.
ZKW will continue to be run by CEO Oliver Schubert, who will be responsible for all operations globally, which includes more than 9,000 employees.
“Through this deal, LG is adding a new growth opportunity to its automotive components business, a future growth opportunity with tremendous potential,” said Jo Seong-jin, CEO of LG Electronics. “In addition to strengthening ZKW’s product development capabilities, LG’s global production experience and international business network will present unlimited opportunities for both companies in the auto market of tomorrow, which includes intelligent lighting solutions.”
