Hankook & Company Group Completes Acquisition of Hanon Systems

PR Newswire

Mon, Jan 6, 2025, 10:37 PM 4 min read

"Tires, Batteries, Thermal Management": Completing Three Core Portfolios to Become a Global High-Tech Leading Group
10 Years of Investment Culminates in Stable Integration, Synergy Creation, and Financial Structure Improvement
Soo Il Lee Appointed as CEO of Hanon Systems, Recognized as the Ideal Leader to Transfer Successful Group DNA

SEOUL, South Korea, Jan. 7, 2025 /PRNewswire/ -- Hankook & Company Group (Chairman Cho Hyun-Bum) announced on January 6 that it has completed the acquisition of Hanon Systems, the world's second-largest automotive thermal management solutions provider.

This marks a decade since Hankook & Company Group became a shareholder of Hanon Systems, acquiring a 19.4% stake in 2014. On December 22, 2024, the Group acquired 144,962,552 new shares through Hanon Systems' rights offering, followed by the purchase of 122,774,000 shares held by Hahn & Company on January 3, 2025. As a result, the Group became the majority shareholder with a 54.77% ownership stake.

According to this, Hanon Systems officially became a subsidiary of Hankook & Company Group under Korean corporate law. This acquisition brings the Group's global assets to approximately KRW 27 trillion, placing it among Korea's top 30 corporations based on net assets.

"Tires, Batteries, Thermal Management": Core Portfolios Realized

Hanon Systems, founded as Halla Climate Control in 1986, has grown into a leading global supplier of automotive thermal and energy management solutions. After changing its name to Halla Visteon Climate Control in 2013, it was rebranded as Hanon Systems in 2015 when Hankook Tire & Technology and Hahn & Company became its primary shareholders.

With this acquisition, Hankook & Company Group has strengthened its position as a comprehensive automotive parts company. Over the past decade, the Group has developed a deep understanding of Hanon Systems and thoroughly evaluated synergies among its core portfolios of tires, batteries and thermal management, culminating in the acquisition of the world's second-largest thermal management provider.

Hanon Systems is recognized for its cutting-edge technology in thermal energy management systems, essential for electric vehicle (EV) battery performance. The Group's acquisition of Hanon Systems confirms its place as a high-tech leader in the automotive sector. Thermal management systems are critical for enhancing the energy efficiency and safety of engines, batteries, and electronic components.

A Hankook & Company Group representative stated, "This landmark deal completes our core mobility portfolio of tires, batteries, and thermal management, positioning us as a global high-tech leader."

Maximizing Synergy and Strengthening Financial Structure

Hankook & Company Group aims to maximize synergies through resource and technology integration. The Group plans to leverage its global sales network and consolidate supply chain management (SCM) capabilities, including raw material procurement.

The Group will also enhance operational efficiency through streamlined IT infrastructure and workflows while fostering a unified corporate culture based on its hallmark "Proactive Culture." This strategic focus on integration will drive seamless collaboration across the organization.

The Group previously stated, "This acquisition will enable Hanon Systems' technological capabilities and resources to deliver even greater impact. With decades of accumulated expertise and assets across all affiliates, we are positioned to lead the future mobility era and achieve unparalleled growth."

Soo Il Lee Appointed as CEO of Hanon Systems

On January 3, Hanon Systems held an extraordinary general meeting at its headquarters in Daejeon, South Korea, appointing Soo Il Lee, Vice Chairman of Hankook Tire, as its new CEO.

With a 37-year career at Hankook Tire, Mr. Lee is seen as the ideal leader to integrate Hankook & Company Group's successful DNA into Hanon Systems. Joining Hankook Tire in 1987, he held various executive positions such as Head of Marketing, Americas Regional Director, China Regional Director, and Business Operations Director. He served as President & CEO from 2018 and as Vice Chairman from 2024.

A Hankook & Company Group representative commented, "Soo Il Lee, the newly appointed CEO of Hanon Systems, will play a crucial role in ensuring a stable integration, improving financial performance, and driving synergy creation despite uncertain external and internal conditions. Our focus will be on strengthening internal capabilities, achieving a seamless cultural and operational alignment, and realizing Hanon Systems' full potential as the world's second-largest company in its field."