Key Takeaways:
Blackstone is betting $676m on South Korea's industrial robotics supply chain.
Blackstone Inc. agreed to invest in Futronic, a South Korean supplier of high-precision actuators, valuing the company at about 1 trillion won ($676m), as the world's largest alternative asset manager deepens its exposure to industrial automation.
"Blackstone will help drive our expansion and solidify our leadership in actuation and motion control solutions," Jin-ho Ko, founder, chairman and chief executive officer of Futronic, said in a statement.
Affiliated private equity funds will make a "significant investment" in the company, Blackstone said Monday without disclosing the exact stake. Ko will remain in his role and work with Blackstone to accelerate global growth and end-market expansion. The deal values the firm at about 1 trillion won, according to a person with knowledge of the matter.
The investment underscores private equity appetite for automation suppliers as manufacturers worldwide accelerate robotics adoption to address labor shortages and improve efficiency. Futronic's actuators are used in industrial robotics and the automotive sector, two industries undergoing rapid technological change.
Futronic supplies high-precision actuators — components that convert energy into motion — to industrial robotics manufacturers and automotive companies. The South Korean firm has built a position in a supply chain that has become a focus for global investors seeking exposure to automation trends beyond the better-known robotics integrators.
The deal adds to a string of private equity investments in Asian industrial technology. KKR & Co. and CVC Capital Partners have also targeted automation and robotics suppliers in the region, betting that factory automation spending will accelerate as companies in China, Japan and South Korea seek to offset demographic headwinds. South Korea has one of the world's fastest-aging workforces, with the share of people aged 65 and older projected to exceed 40 percent by 2050, according to government data.
Blackstone, which managed about $1.1 trillion in assets as of the end of the first quarter, has been expanding its private equity footprint in Asia. The firm's Asian private equity group has deployed capital across technology, healthcare and financial services in recent years.
The transaction is subject to customary regulatory approvals. Financial terms beyond the valuation were not disclosed.
This article is for informational purposes only and does not constitute investment advice.
