KKR exits investment in KCF Tech for $1b to SK Group unit

Photo: Reuters

Private equity major KKR will exit its investment in KCF Technologies – a producer of parts used in electric vehicle batteries – to South Korean conglomerate SK Group’s affiliate SKC for $1 billion (KRW 1.2 trillion).

Other details of the transaction were not disclosed.

The sale comes just two years after KKR made the bet in KCF from its $9.3 billion Asian Fund III.

Last year, KKR completed a complex corporate carve-out of the company that “saw its (KCF’s) capacity double during KKR’s investment period through the construction of new factories in addition to expanding overseas into new markets,” the private equity firm said in an announcement on Thursday.

KKR added that it also assisted the company and its management team in setting up all core functions to operate as an independent company, securing long-term supply contracts, and making key senior appointments.

Anyang-headquartered KCF Technologies, also well known as LS Mitron, is a producer of copper foils and flexible copper clad animates predominantly used in li-ion batteries for electric vehicle applications.

This transaction is subject to customary regulatory consents and approvals.