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A Look at KKR’s Investments in Copper Foil and Autos

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Investments made

On March 4, 2018, KKR & Company (KKR) and LS Group made an announcement with respect to KKR’s investment in LS Group’s auto business, LS Automotive. The private equity company also wrapped up its acquisition of KCF Technologies, which oversees LS Group’s copper foil business.

With the help of KKR’s capabilities, KCF Technologies and LS Automotive could witness favorable momentum in their businesses in international as well as domestic markets. In addition to this, both companies could also experience higher sales in the present markets and could expand their reaches into new verticals.

KKR’s management has a favorable outlook with respect to these investments because it has a positive view on the auto industry. According to management, global demand for environmentally friendly automobiles continues to reach higher levels.

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KCF Technologies’ management

KCF Technologies’ management has a favorable outlook with respect to KKR’s investments. According to management, this will be the first time KCF Technologies will carry out its operations as an independent company. Management also stated that KKR has a strong track record in regard to carving-out, which enables the companies to carry out their operations independently.

Along with KKR, KCF Technologies should now more effectively meet the demands of its present customers, and it will also target new segments.

On a trailing-12-month basis, KKR’s dividend yield is 3.0%, and its peers (XLF) Ares Management (ARES), Ameriprise Financial (AMP), and Oaktree Capital Group (OAK) have dividend yields of 5.0%, 2.1%, and 7.7%, respectively.

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