As part of what seems as Samsung Group’s internal reorg scheme, Cheil Industries is selling its fashion business to unlisted affiliate Samsung Everland to focus on electronics materials.
Reuters is reporting that the 1.05 trillion won ($968.6 million) asset transfer comes as part of Samsung Group’s plans to tighten its grip on electronics components and materials.
Cheil Industries initially started as a textile firm in 1954 before expanding into the fashion business in the 1980s and later into electronics materials. Last year, its fashion business generated only 30% of total revenues, with the rest coming from electronics materials and chemicals operations.
The company makes things like flat-screen films and poly carbonate used in smartphones. Along with other Samsung Group companies, Cheil Industries recently acquired German OLED raw materials firm Novaled AG for 260 million EUR.
Samsung Everland, on the other hand, has a portfolio of theme parks, catering services and building management services.