LG acquires automotive lighting company ZKW Group

Under the terms of the transaction, LG Electronics will acquire a 70% stake in ZKW Group with parent company LG Corp. purchasing the remaining 30%, a press release reads. The merger is expected to result in synergies that will allow the combined companies to take the lead in the global lighting sector in autonomous vehicle components. Headquartered in the Lower Austrian town of Wieselburg, ZKW Group is a supplier automotive lighting systems with a presence in markets throughout Europe in addition to China, Mexico and the United States. With revenues of EUR 1.26 billion in 2017 and an average annual sales growth rate of more than 20% over the past five years, ZKW products are found in many major European premium automotive brands including Audi, BMW, Porsche and Daimler, among others. Together, LG and ZKW will focus on developing intelligent lighting solutions that display high-resolution information and warnings on roads collected from sensors, including autonomous driving cameras and automotive communications ZKW Group will continue to be managed by the current team led by CEO Oliver Schubert, who will be responsible for all operations around the world which includes more than 9’000 employees. LG is committed to maintaining ZKW's autonomy and workplace culture. In particular, production in Austria will remain unchanged for at least five years. "Through this deal, LG is adding a new growth opportunity to its automotive components business, a future growth opportunity with tremendous potential," said Jo Seong-jin, chief executive officer of LG Electronics. "In addition to strengthening ZKW's product development capabilities, LG's global production experience and international business network will present unlimited opportunities for both companies in the auto market of tomorrow, which includes intelligent lighting solutions."