SKC Inc., a chemical unit of SK Group, said Monday that it will acquire KCF Technologies Co., the world's top producer of copper foil for lithium-ion batteries, this week in a bid to diversify its business portfolio.
SKCFT Holdings Co., a subsidiary of SKC, is set to buy a 100 percent stake in KCFT from Kohlberg Kravis Roberts & Co., a US-based private equity fund, for 1.19 trillion won ($1 billion) on Tuesday.
"The acquisition is meant to expand mobility business," SKC said in a regulatory filing.
KCFT was the top player in the global cooper foil market in 2018, with a 15 percent market share. The global copper foil market came to $1.2 billion in 2017, up 41 percent from $850 million in 2016, according to KCF Technologies.
Its major customers include electric vehicle battery makers LG Chem Inc., Samsung SDI Co. and Panasonic Corp.
Copper foil is used as the negative electrode current collector of a lithium ion battery.
SKC, whose business area includes producing polyester film as well as materials for semiconductors and cosmetics, has said it expects KCFT to be its new growth engine in line with the expanding EV market. (Yonhap)