ICAH, a manufacturer of IT device material components, announced on the 28th that it has completed the merger and acquisition (M&A) by paying the remaining balance for the acquisition of the polyurethane (PU) division from Main Elecom.
ICAH acquired Main Elecom's polyurethane division to lead the display composite materials market applied to OLED.
A company representative stated, “We developed an integrated display composite material anticipating that OLED will become the center of the display market. Through the acquisition of the polyurethane division, we will internalize PU foam, a raw material for display composite materials, and lead the OLED display composite materials market by investing in facilities on a new site in Vietnam.”
ICAH’s performance this year is expected to grow significantly due to the acquisition effect of the polyurethane division, diversification of clients, and expansion of new product lines, although last year’s performance was sluggish.
Last year, ICAH recorded sales of 22.821 billion KRW and an operating loss of 7.64 billion KRW. This poor performance was due to a decrease in smartphone shipments by its main client, Samsung Electronics, and regulations on fully waterproof phones in Europe, which lowered the adoption rate of film-type micro thin antennas (MFA) in Samsung Electronics’ smartphones for the European market. Consequently, the MFA raw material inventory secured as safety stock last year was also reflected as an inventory asset valuation loss (expense) under accounting policies, impacting profits.
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