Blackstone is to make a significant investment in South Korean robotics components manufacturer Futronic, strengthening its exposure to the fast-growing automation and industrial technology sectors, according to a report by Reuters.
Private equity funds managed by Blackstone have entered into a definitive agreement to invest in the supplier of high-precision actuators used in automotive and industrial robotics applications.
The report cites an unnamed source familiar with the transaction as highlighting that the deal values the company at approximately KRW1tn ($676m).
Founded by Jin-ho Ko, Futronic develops motion control and actuation technologies that are used in advanced manufacturing and robotics systems. Ko will remain chairman and chief executive officer following the transaction and will work alongside Blackstone to support the company’s international expansion and broader end-market growth.
In a statement, Ko said the partnership with Blackstone would help accelerate Futronic’s global expansion while reinforcing its position in actuation and motion control technologies.
The investment adds to Blackstone’s portfolio of industrial and technology-focused assets as private equity firms continue to target businesses benefiting from long-term trends including factory automation, robotics and advanced manufacturing.
The transaction also highlights continued investor interest in South Korea’s technology sector, where specialist manufacturers supplying the global robotics and automation industries are attracting increasing attention from international private equity investors.
Financial terms of Blackstone’s investment have not been disclosed, although the transaction is reported to value Futronic at around KRW1tn.
