Doosan Bobcat is buying back former sister company Mottrol, a South Korean-based hydraulic component manufacturer, according to The Korea Economic Daily. The $178.6 million cash deal is expected to close in September.
Parent company Doosan Group sold Mottrol to Korean private equity firms Socius Advisors and Well to Sea Investment Co. in 2020 as part of its restructuring.
According to the report, Doosan Bobcat expects the oil- pressure machine maker with hydraulic part-making technology “to bolster its business competitiveness.”
Mottrol was founded in 1974, staking its claim as the first company in South Korea to enter the hydraulics industry. It produces travel and swing motors, pumps, main control valves and other hydraulic components for construction equipment.
In response to equipment electrification, Mottrol has also been developing “E-Drive,” a technology for inverters and swing and travel devices that can electrically drive and control machines.
Scott Park, CEO and vice chairman of Doosan Bobcat, said, “Mottrol’s hydraulic and precision control technologies represent significant opportunities to support Doosan Bobcat’s growth strategy, as we further diversify our company portfolio through vertical integration.”
He added, “Doosan Bobcat and Mottrol will create synergies while also seeking to expand Mottrol’s business by extending external volumes.”
Mottrol’s military equipment parts division, MNC Solution, is not included in the deal. The acquisition is subject to the Korea Fair Trade Commission (KCTC)’s customary closing conditions.
