Gaon Cable takes over LS Cable & System's US arm

Gaon Cable Co. said on Tuesday it has taken over the US arm of parent company LS Cable & System Ltd. to beef up its business of mid-to-low voltage cables used to provide power to large-scale industrial sites and commercial buildings.

The US unit operates a plant in Tarbo, North Carolina. LS Cable previously owned 82% of the US arm, with Gaon holding the remainder.

The transaction is expected to help LS Cable, owned by holding company LS Corp., to focus on high-speed cable products in growing demand for AI data centers.

Gaon will issue 6.7 million new shares and place them with LS Cable & System to pay for the acquisition. That will bring LS Cable’s stake in Gaon to 77.9% from 61.44%.

Gaon will speed up its push into the cable product markets for renewable energy facilities, power grids and electricity generators in the US, as well as undersea cables.

It aims for 2.5 trillion won ($1.8 billion) in sales in 2025, up from 1.5 trillion won in 2023.

Write to Eui-Myung Park at Uimyung@hankyung.com
 


Yeonhee Kim edited this article.