Daesung Finetech Co., Ltd. , an auto parts manufacturing company, announced on the 20th that it is pursuing a merger and acquisition (M&A) with Monolith Co., Ltd., an ICT convergence theme park startup. The company’s position is that this merger and acquisition is a strategic decision to secure growth momentum through new business entry and business diversification, increase corporate value, and create synergy between the two companies.
The two companies plan to approve the merger agreement through their respective boards of directors on the 19th and proceed with the procedure in accordance with relevant laws and regulations. Through this merger, Daesung Finetech expects to diversify its profit structure and increase management efficiency, thereby achieving financial and strategic benefits.
Even after the merger, Daesung Finetech plans to operate its automobile parts manufacturing business and theme park content development business as independent business divisions, and aims to secure both the stability of its existing business and the growth potential of its new business.
Daesung Finetech is a KOSDAQ-listed manufacturing company that supplies parts to major domestic automakers based on Fine Blanking molds and precision processing technology. On the other hand, Monolith is a startup that operates a theme park business based on robotics and ICT technology, and is developing and operating various indoor and outdoor attractions such as the gravity-based racing content 'RACE981' through '9.81 Park' operated in Jeju.
With this merger, Daesung Finetech plans to internalize the production and maintenance system for theme park attractions based on its existing manufacturing technology and expand its franchise targeting the global market. In fact, Monolith is currently building a second '9.81 Park' near Incheon International Airport in addition to Jeju, and this facility is being promoted to be about twice the size of Jeju.
Daesung Finetech CEO Kim Byeong-jun said, “The merger with Monolith is a decision that adds new content-based growth potential to our existing manufacturing-centered business capabilities,” adding, “The combined capabilities of both companies will allow us to establish ourselves as a competitive content-manufacturing convergence model in the global market in the future.”
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