"Recession is an Opportunity" Mid-sized Companies Venture into New Businesses

[Financial News] Recently, among mid-sized companies, there are cases of entering new businesses or strengthening related businesses through corporate acquisitions. It is analyzed that when entering a recession and the number of corporate sales increases, it can be an opportunity for companies with some financial power to strengthen new businesses.
According to related industries on the 14th, Sinopax recently decided to acquire Lotte Chemical's water treatment business division. This is a business transfer method in which Sinopax's 100% subsidiary, Sinopax Membrane, acquires the entire water treatment business operated by Lotte Chemical.
With this acquisition, Sinopax Membrane has secured facilities capable of producing 550,000㎡ annually of water treatment membranes for wastewater treatment, along with Lotte Chemical's factory site of 32,259㎡ and building of 5,775㎡ located in the Daegu Water Cluster National Industrial Complex. In addition, it has acquired a total solution related to water treatment, including purification, wastewater treatment, and ultrapure water manufacturing.
A Sinopax representative said, "Through this acquisition of Lotte Chemical's water treatment business division, we have been able to provide integrated solutions tailored to various industry demands based on the nation's top-level membrane technology portfolio linked with existing △Microfiltration (MF) △Ultrafiltration (UF) △Nanofiltration (NF) technologies."
Hansol Technics, together with Highland Equity Partners, acquired Orion Technologies, a ship engine controller company. Hansol Technics secured approximately 50% of Orion Technologies' shares by investing 67.6 billion won. The remaining shares were acquired by Highland.
Hansol Technics, a subsidiary of Hansol Group, has focused on the electronic components business, including inverter control boards and power boards for home appliances, and wireless charging modules for smartphones since its establishment in 1996. Through this acquisition of Orion Technologies, Hansol Technics has expanded its business area into the ship engine controller field.
Susa Industry, which operates nuclear and thermal power plant maintenance businesses, secured a 43% stake in Omisan Wind Power, becoming the major shareholder. Through this, it has entered the wind power business following the solar power business through its subsidiary 'SH Solar Farm Vina' in Ho Chi Minh, Vietnam. 
Omisan Wind Power is a wind power complex completed in the Omisan area, Seokpo-myeon, Bonghwa, Gyeongbuk. It includes 14 wind turbines and has an installed capacity of 60.2㎿, producing 98,700㎿h annually. Susa Industry plans to secure wind power plant operation know-how through Omisan Wind Power and promote businesses such as wind power maintenance. It is also known to be considering wind power investment in the Southeast Asia region.
Minseon Noh, head of the Small and Medium Business Policy Research Office at the Small and Medium Business Research Institute, said, "For companies with some financial power, a recession is a time when they can pursue growth through open innovation and technology innovation-type mergers and acquisitions (M&A). However, considering that more than 70% of M&As fail, it is necessary to fully consider the intrinsic value of the company and the synergy effect after the acquisition."

butter@fnnews.com Kang Kyung-rae Reporter