Cheil Industries to Acquire Novaled AG

  Cheil Industries to Acquire Novaled AG

Business Wire

SEOUL, Korea & DRESDEN, Germany -- August 9, 2013

Cheil Industries, a leading electronic materials company in the display
industry, and Novaled AG, a world class provider in OLED technologies and
materials, announced today that Cheil Industries acquires a majority stake in
Novaled in a transaction valuing Novaled at €260 million

Cheil Industries today signed a binding agreement to acquire a majority stake
of approximately 50% in Novaled. Samsung Electronics will acquire
approximately 40%, the remaining stake of approximately 10% in Novaled is
currently held by Samsung Venture Investment which will maintain its current
shareholding. The transaction values Novaled at a total enterprise value of
€260m including a €30m contingent payment, which is conditional to reaching
certain milestones.

Cheil Industries’ CEO Jong-Woo Park commented: “Leadership in future display
market will be determined by technological capacity”, and “this acquisition is
expected to generate significant synergy in new-generation OLED materials R&D
and will play a critical role in enhancing Cheil Industries’ market position
as a global leader in electronic materials”.

Novaled’s selling shareholders are a group of financial investors and
individuals, including eCAPITAL entrepreneurial Partners AG, Zweite
TechnoStart Ventures Fonds GmbH & Co. KG, Omnes Capital, TechFund Europe
Management S.A.S., Innovation Capital S.A.S., KfW, Dresden Fonds GmbH and
TUDAG TU Dresden AG, amongst others. “The transaction with Cheil Industries
and Samsung Electronics completes a partnership that started in 2011 with
Samsung Venture Investment becoming a strategic investor in Novaled. At the
end, the dual track process with a parallel preparation of a listing on NASDAQ
led not only to the best solution for Novaled but also to one of the most
successful venture capital investments in Germany”, remarks Paul-Josef Patt,
CEO of eCAPITAL and lead investor since the beginning of 2009. “This marks the
start of a new era for Novaled’s development both in the display and lighting
markets. As 2005 lead investor in Novaled, and having contributed to the
company’s key strategic decisions, we welcome the merger with Cheil
Industries”, comments Michel de Lempdes, Partner at Omnes Capital.

As part of the transaction, Cheil Industries and Samsung Electronics will also
acquire the shares of founding partners of Novaled. “This transaction is an
important milestone in the development of Novaled: the proof of the capability
of the Doping Technology to advance the performance of OLED devices. With this
target in mind, we founded Novaled back in 2001”, says Dr. Jan
Blochwitz-Nimoth.

Novaled AG is a leader in the OLED field, specializing in high efficiency,
long-lifetime OLED structures. Through the combination of organic conductivity
doping technology, proprietary materials and OLED stack development expertise,
Novaled offers OLED display and lighting manufacturers customized solutions to
optimize the performance, power efficiency, stability and lifetime of their
products while decreasing their manufacturing complexity and cost. In 2012,
Novaled generated revenues of €26m.

Novaled has developed long-term partnerships with major OLED players worldwide
– its strongIPposition in OLED technology is based on more than 500 patents
granted or pending. The company was founded in 2001 through a spin-off of the
Dresden University of Technology and the Fraunhofer Institute of Dresden.

Through the acquisition of Novaled, Cheil Industries will be able to lead the
change in the OLED market by leveraging Novaled’s technology and patents, and
successfully positions itself for a new phase of growth as global market
leader in display materials. According to DisplaySearch, the global OLED
market is expected to grow rapidly from US$6.8 billion in 2012 to US$20
billion by 2017. Cheil Industries plans to grow Novaled’s existing R&D
activities and concentrate a main part of its OLED R&D strategy in Dresden.

“With the support of its financial investors and public stakeholders Novaled
has developed to an OLED world leader position”, says Gildas Sorin, CEO of
Novaled. “We are very pleased to welcome Cheil Industries and Samsung
Electronics as our new owners. Cheil Industries and Novaled are complementary
– the alliance will help both parties to contribute and fully leverage its
strengths for the benefit of the whole OLED industry.”

The transaction is subject to approval from competition and other relevant
authorities.

Goldman Sachs, Sullivan & Cromwell and Fox Corporate Finance acted as advisors
to Novaled and its shareholders. Citi and Skadden, Arps, Slate, Meagher & Flom
acted as advisors to Cheil Industries and Samsung Electronics.

About Cheil Industries

About Novaled

Contact:

Press Contacts:
Kay Koh
Phone: +82 2 2076 6443
Fax: +82 2 2076 6971
s.k.koh@samsung.com
Anke Lemke
Phone: +49 351 79658 19
Fax: +49 351 79658 29
anke.lemke@novaled.com
 
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