KKR Completes Investments in LS Group’s Auto Parts and Copper Foil Businesses

Standalone copper foil and laminate business, LSA,  rebrands as KCF Technologies. Investment to support businesses' long-term domestic and international growth

LS Group ("LS"), one of South Korea's largest diversified corporations, and KKR, a leading global investment firm,  announced that KKR has completed its investment in LS Automotive ("LSA"), an electrical auto parts maker for the global automotive industry, and has completed the acquisition and carve-out of KCF Technologies Co., Ltd. (“KCFT”), the copper foil and flexible copper clad laminate business formerly known as LS Mtron.

By leveraging KKR's expertise and global network, KKR's partnership with LSA and KCFT will accelerate the companies’ growth in domestic and overseas markets, help to penetrate new verticals, and increase sales in existing markets. Further, KCFT will leverage KKR’s expertise in completing complex, strategic carve-outs from corporations worldwide and supporting these companies in operating as independent entities.

Dr Young-tae Kim, CEO of KCFT, added, "Our partnership with KKR is transformational in that KCF Technologies will operate as a standalone company for the first time in its history. Together, we look forward to delivering great value to existing customers while expanding into new segments under our fresh brand."

Established in 1973, LSA is an auto parts company in South Korea that has successfully established globally competitive positions in high-growth auto component segments including switches, interior lamps and human-machine interface ("HMI") systems, and electrical and electronic components such as power seat modules, electrical control units, sensors and relays. LSA is the top Tier-1 supplier of HMI components to Hyundai Kia Motors, as well as major global original equipment manufacturers ("OEMs") in the U.S. and Japan, and leading local OEMs in China and India.

KCFT manufactures and sells copper foils for large capacity lithium-ion batteries for electric vehicle ("EV") applications and mobile devices. The copper foil business for EV battery applications is expected to be among the fastest-growing segments of the auto industry due to rising demand for environmentally friendlier transportation. KCFT supplies global EV battery leaders including LG Chemical and major battery manufacturers in Japan and China.

KKR makes its investment from its US$9.3 billion KKR Asian Fund III.