Samsung Sell-Off Includes Video Surveillance Business
As part of its group-wide restructuring plan, Samsung is selling multiple affiliates for almost $2 billion to South Korean conglomerate Hanwha.
Update: Samsung Techwin America held a phone conference with industry trade publication editors to explain the future of its operations.
Click “Samsung’s Surveillance Song to Remain the Same” to learn more.
RIDGEFIELD PARK, N.J. – Samsung has reached an agreement to sell multiple divisions – including its video surveillance business – to Hanwha Group, a South Korean-based business conglomerate.
The agreement will result in the controlling shareholders of Samsung Techwin, including Samsung Electronics, Samsung C&T and other Samsung Group affiliates, selling their holding stakes in Samsung Techwin and Samsung General Chemicals to Hanwha for about $1.7 billion. The transaction is expected to be completed during the first half of 2015 and is subject to approval from antitrust regulatory authorities.
Samsung is comprised of dozens of units including Samsung Electronics, the world’s leading provider of mobile phones and TVs, which earn a collective revenue equal to around 20% of South Korea’s annual economic output, according to news reports.
The family-run group currently chaired by Lee Kun-Hee has merged, broken out or newly listed some of its key units in recent years as he prepares to hand over control to his son, J.Y. Lee.
The sell-off indicates a desire to streamline Samsung so as to concentrate on its key profit-making units, Kim Ji-San, analyst at Seoul-based Kium Securities, said via Tech2.com.
“The deal shows Samsung is determined to shed non-core units deemed not competitive enough globally and to focus on key businesses like electronics, finances, construction and engineering,” Kim said.
Samsung Techwin, a manufacturer of video surveillance products, chip-making equipment and self-propelled artillery, reported a net profit of $119.8 million last year, but has amassed a net loss of more than $13 million for the first three quarter of this year.
Samsung Techwin America made its security industry debut in the United States at ISC West in 2010 after consolidating products lines by Samsung Electronics and Samsung Techwin. At the time the business unit was led by industry veteran Frank DeFina, who resigned from Samsung in May.
In a statement, Jong Wan Lim, managing director of the professional security division of Samsung Techwin Europe Ltd., said the Hanwha Group’s investment would enable the company to continue innovating “market leading solutions that will create new business opportunities and ensure our future growth.”
The statement made no specific mention about Samsung’s video surveillance business; however, Lim went on to say: “Customers can be assured that it is business as usual and that there will be absolutely no disruption to the supply of products or to the normal high levels of pre- and post-sales support that customers have come to expect from Samsung Techwin.”
Founded in 1952, Hanwha Group is a global leader in a broad range of businesses spanning the spectrum of manufacturing, construction, finance, services and leisure industries. It operates 52 domestic and 90 overseas affiliates. In 2013, Hanwha Group reported total revenue of more than $35 billion, while its assets were valued at approximately $117.4 billion.
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