Korea's Crescendo makes partial exit from Model Solution
South Korean GP Crescendo Equity Partners has agreed to make a partial exit from precision prototype manufacturer Model Solution as part of a deal that will see Hankook Tire assume control of the business.
Hankook will pay KRW68.6 billion ($63.4 million) for a 75% interest in Model Solution, with UK-listed industrial technology player Laird selling 51% and the remaining 24% coming from Crescendo.
Laird teamed up with Skylake Investment and Crescendo to acquire 100% of the company in 2014 for KRW70 billion. Given that Crescendo will retain 25% of Model Solution following Hankook’s investment, it appears the GP bought Skylake’s stake at some point after the initial transaction.
With a presence in Seoul and Silicon Valley, Model Solution is a one-stop shop for prototype and low volume parts production. Its expertise covers precision prototyping, design support, machining and tooling, and 3D printing. The company’s approach can reduce costs and shorten manufacturing lead-times for components used in mobile devices, consumer electronics, and medical equipment.
Hankook Tire – which is the largest tire producer in Korea and ranks seventh globally with sales of KRW66.2 trillion in 2016 – said in a statement that the acquisition of Model Solution is part of efforts to invest in promising technologies. It will seek to maximize synergies by integrating the company’s processes into the operations of MK Technology, a subsidiary that specializes in mold equipment.
Crescendo was established in 2012 with support from Paypal co-founder and venture capital investor Peter Thiel. It focuses on opportunities in Korea’s mid-cap space.
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