Lee & Ko successfully advised LG Electronics and LG Corp on their acquisition of ZKW Group (“ZKW”), an Austria-based automotive lighting and headlight systems provider. Under the terms of the acquisition, LG Electronics will acquire a 70 percent stake in ZKW Holding GmbH, the holding company of ZKW, with LG Corp. purchasing the remaining 30 percent. The transaction is worth 1.1 billion euros (KRW 1.4 trillion).
With subsidiaries in US, Mexico, China, Czech Republic and Slovakia, ZKW is considered one of the world leaders in premium automotive headlamp technology. ZKW products are found in premium European automotive brands including BMW, Benz, Audi, Porsche, Volvo, Volkswagen, Ford, and GM. Based on global production volume, ZKW is one of the top five premium headlamps manufacturer.
For the successful signing of LG Group’s largest M&A deal to date, Lee & Ko has served for more than two years as the control tower for over 10 advisers including legal, financial, environmental, labor and insurance advisers. As the leading adviser, Lee & Ko has provided comprehensive advice in connection to the deal structure, deal strategy, due diligence as well as any legal and regulatory issues. Lee & Ko also participated in the multiple negotiations in Germany, Austria and Korea and further advised on the detailed process relating to the signing of the acquisition agreement.
The share purchase agreement for this transaction was signed on April 26, 2018, and it is considered as another case where Lee & Ko proved its competence in providing effective and efficient advice in mega-sized M&A deals.
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