S. Korea's BioVill acquires local Cadillac importer at $18.8 million

BioVill Co., Kosdaq-listed chemical material and biotech company, acquired Cadillac dealer NPC Conversion in South Korea at 20 billion won ($18.8 million), adding a car dealer service to diversify its business portfolio.

BioVill said in a regulatory filing on Tuesday that it has acquired entire 11,434,284 shares of NPC Conversion at 20 billion won ($18.8 million). The Korean chemical material and biotech company said the latest acquisition would enhance content of Heallax Meditel, its recently developed customized living care program.

NPC Conversion is engaged in the sale and maintenance of U.S. Cadillac’s new cars as well as certification of its used cars in Korea. Apart from Cadillac vehicles, the Korean auto service company also manufactures and sells own conversion cars such as stretch limousines and camping cars. The company manages showrooms in Seocho, Gangseo districts in Seoul and Bundang in Gyeonggi Province, a certified used car display center in Yangjae, southern Seoul, and an after-sale service center in Gangseo district. It also runs a production and maintenance facility dedicated to conversion cars near Boryeong, South Chungcheong Province.

Last year, sales of Cadillac brand cars in Korea hit a record high since the launch of the brand in the country in 1996. NPC Conversion’s other businesses, including the customized camping trailers and other conversion car business, have also enjoyed substantial growth.

NPC Conversion raised 5.42 billion won in sales in the fourth quarter ended December last year. The company is projected to have recorded a significant increase in sales in the first quarter ended March from a year ago based on its experienced dealer service. The company’s maintenance business backed by a Cadillac maintenance facility in southern Seoul is expected to report 50 percent growth this year from last year.

BioVill said that it aims to raise 70 billion won or more in sales and 3 billion won or more in operating income this year from existing vehicle cars and conversion car business. It also aims to commercialize newly developed personalized camping car trailer system by optimizing it to its Heallax Meditel program and raise 100 billion won or more in sales.

An unnamed official from BioVill said that it will secure a foundation for sales growth through the acquisition of NPC Conversion and that it will maximize synergy between businesses by linking existing wellness- and environment-related businesses.

Shares of BioVill ended at 4,800 won on Wednesday, down 0.1 percent or 5 won from the previous session.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]