Rockwell Automation Inc.'s Korea unit agreed to acquire the controller division of Samsung Electronics Co.'s Mechatronics business located near Seoul, Korea, for an undisclosed amount.
The acquisition would solidify Rockwell Automation's position in Asia's industrial automation market by adding to the company's line of PLCs, motion, drives, distributed I/O and software product lines, said Don Davis, chairman and chief executive officer, Rockwell Automation.
According to a Dow Jones report, Samsung Electronics' Korea unit had $25 million in sales in fiscal 2001 and expects to double this sales figure in 2003 including the Samsung asset buy.
This acquisition would form a new business that would operate under the Rockwell Samsung Automation name. The business would create technologies in the design and development of automation products including PLCs, drives and software.
The companies expect to complete the deal at the end of the second quarter in June.
Rockwell said it would receive a license to brand and market products with the Samsung name in Korea as part of the agreement. Samsung Electronics has also agreed to purchase control and other automation products from Rockwell Automation, including those produced by the new company.
The company's headquarters would be in Seoul, Korea, and the manufacturing and product development facility would be located in the Suwon City area. These operations would report to the Rockwell Automation Controls and Information business group based in Cleveland.