Trelleborg Sealing acquires South Korean semiconductor seals maker

TRELLEBORG, Sweden—Trelleborg Sealing Solutions has signed an agreement to acquire MNE Group, a South Korea-based manufacturer of precision seals.

The acquired group is primarily focused on the supply of specialty seals for both aftermarket and OE manufacturers of semiconductor production equipment.

Headquartered in Yongin, outside Seoul, MNE consists of the companies Materials Nano Engineering and Materials Nano Solution, Trelleborg said in a Dec 20 press release.

The transaction, valued at $62 million (SEK 650 million), is expected to be completed in the first quarter of 2024, the company added.

According to Trelleborg, the South Korean operation is expected to generate about $28 million in revenue this year, with an earnings margin "in line with the TSS business area."

The purchase, Trelleborg Sealing President Peter Hahn said, provides "established customer contacts with some of the world's largest semiconductor manufacturers in the largest local market for semiconductors globally.

"With South Korea as a base, we plan to grow further in other Asian markets," Hahn added, noting significant potential sales synergies for Trelleborg, which has prioritized semiconductors as a "growth area."

MNE's "expertise and local capacity"—along with Trelleborg's technology, R&D and global network—should accelerate growth in the "rapidly expanding and profitable market segment," he said.

According to Trelleborg, semiconductor chips are manufactured in high-tech facilities with "extreme requirements for purity and plasma resistance."

"Process tools and manufacturing equipment require special seals that offer outstanding performance in sealing these applications," the group added.