Dec 23, 2022

SFA to acquire 28% stake in CIS to lead renewable battery equipment sector Through the sale of the shares, SBI Investment and more will reap a whopping 70% ROI in just two years By Logo　of　general　equipment　manufacturer　SFA　Engineering　Corp South Korea’s general equipment manufacturer SFA Engineering Corp. is poised to acquire CIS Corp., a renewable battery production equipment maker. SFA signed a formal contract on Friday to acquire a 28% stake in CIS held by SBI Investment Korea, ST Leaders Private Equity, and CEO of CIS Kim Soo-ha at 180 billion won ($141 million).  Through the sale of the shares, SBI Investment and more will reap a whopping 70% return on investment (ROI) in just two years.  The Korean Federation of Community Credit Cooperatives, which participated in the acquisition fund, will also enjoy robust profits.  CIS makes electrode manufacturing equipment such as coater, roll press, and slitter, which are necessary for renewable battery manufacturing.  The company also makes the gas diffusion layer (GDL).  Logo　of　CIS Along with Wonik PNE, CIS is widely known as one of the two companies that can manufacture electrode manufacturing equipment in Korea. The company’s annual revenue reached 132.7 billion won while the operating revenue recorded 16.4 billion won. Both revenue and operating profit surged more than 15% from the year prior. SFA manufactures all types of equipment needed in renewable battery manufacturing except for the electrode process. Once the acquisition of CIS is complete, SFA will be able to manufacture the entire lineup of equipment needed for renewable battery manufacturing. Write to Dong-Hun Lee at leedh@hankyung.com Jee Abbey Lee edited this article. 1 Min read