Samsung and Cheil Industries Acquire Novaled AG

From X-bit Labs: 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.

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