by Anton Shilov
08/12/2013 | 10:58 PM
Cheil Industries, a leading electronic materials company in the display industry, and Novaled AG, a world class provider in OLED technologies and materials, announced today that Cheil Industries acquires a majority stake in Novaled in a transaction valuing Novaled at €260 million. Samsung Electronics will buy 40% stake in Novaled.
Cheil Industries today signed a binding agreement to acquire a majority stake of approximately 50% in Novaled. Samsung Electronics will acquire approximately 40%, the remaining stake of approximately 10% in Novaled is currently held by Samsung Venture Investment which will maintain its current shareholding. The transaction values Novaled at a total enterprise value of €260m including a €30m contingent payment, which is conditional to reaching certain milestones.
“Leadership in future display market will be determined by technological capacity”, and “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 Jong-Woo Park, chief executive officer of Cheil Industries.
Novaled’s selling shareholders are a group of financial investors and individuals, including eCAPITAL entrepreneurial Partners AG, Zweite TechnoStart Ventures Fonds GmbH & Co. KG, Omnes Capital, TechFund Europe Management S.A.S., Innovation Capital S.A.S., KfW, Dresden Fonds GmbH and TUDAG TU Dresden AG, amongst others.
“The transaction with Cheil Industries and Samsung Electronics completes a partnership that started in 2011 with Samsung Venture Investment becoming a strategic investor in Novaled. At the end, the dual track process with a parallel preparation of a listing on NASDAQ led not only to the best solution for Novaled but also to one of the most successful venture capital investments in Germany”, remarks Paul-Josef Patt, CEO of eCAPITAL and lead investor since the beginning of 2009.
As part of the transaction, Cheil Industries and Samsung Electronics will also acquire the shares of founding partners of Novaled.
Novaled AG is a leader in the OLED field, specializing in high efficiency, long-lifetime OLED structures. Through the combination of organic conductivity doping technology, proprietary materials and OLED stack development expertise, Novaled offers OLED display and lighting manufacturers customized solutions to optimize the performance, power efficiency, stability and lifetime of their products while decreasing their manufacturing complexity and cost. In 2012, Novaled generated revenues of €26m.
Novaled has developed long-term partnerships with major OLED players worldwide – its strong IP position in OLED technology is based on more than 500 patents granted or pending. The company was founded in 2001 through a spin-off of the Dresden University of Technology and the Fraunhofer Institute of Dresden.
Through the acquisition of Novaled, Cheil Industries will be able to lead the change in the OLED market by leveraging Novaled’s technology and patents, and successfully positions itself for a new phase of growth as global market leader in display materials.
According to DisplaySearch, the global OLED market is expected to grow rapidly from $6.8 billion in 2012 to $20 billion by 2017. Cheil Industries plans to grow Novaled’s existing R&D activities and concentrate a main part of its OLED R&D strategy in Dresden.
“With the support of its financial investors and public stakeholders Novaled has developed to an OLED world leader position. We are very pleased to welcome Cheil Industries and Samsung Electronics as our new owners. 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 Gildas Sorin, chief executive officer of Novaled
The transaction is subject to approval from competition and other relevant authorities.