SC Engineering Signs Basic Agreement to Acquire Cellontec: "We Will Develop It into a Healthcare Specialist Company"

[Asia Economy Reporter Hyunseok Yoo] Comprehensive engineering specialist company SC Engineering announced on the 24th that it is scheduled to sign a basic agreement for the acquisition of management rights of Seowon ENC and Cellontech, a bio company specializing in regenerative medicine business.

According to this basic agreement, SC Engineering plans to acquire 1.02 million shares (51% stake) of Cellontech at 16,800 KRW per share to secure management rights. The total acquisition amount is approximately 17.1 billion KRW, and the final contract is expected to be signed after the completion of additional due diligence on July 30.

On the 4th, Seowon ENC selected SC Engineering as the preferred negotiation partner regarding the sale of its subsidiary Cellontech’s shares. Seowon ENC, a subsidiary of SC Engineering, established Cellontech in March by physically splitting off its bio business division.

Cellontech is engaged in regenerative medicine businesses such as bio-collagen-based biomaterials, cell therapy products, and umbilical cord blood banking. The large-scale bio-collagen production plant currently under expansion in Geumgok General Industrial Complex, scheduled for completion in 2022, aims to proactively and strategically respond to the global demand expansion for bio-collagen and bio-collagen-based therapeutic materials.

SC Engineering prepared to enter the bio new business by adding pharmaceutical and medical supplies wholesale and retail, medical device import and sales, and other business purposes at the last year’s extraordinary general meeting of shareholders. Additionally, in March, it recruited Mansoon Hwang, CEO of Korea Investment Partners and a leading domestic bio investment expert, as a management advisory consultant.

Kim Gunwoo, CEO of SC Engineering, stated, “We plan to complete additional due diligence by the end of next month and finalize the payment for the stock transfer to complete the acquisition of Cellontech.” He added, “Along with the existing regenerative medicine business, we plan to expand our scope into various bio new businesses and grow Cellontech into a comprehensive healthcare leading company.”

This content was produced with the assistance of AI translation services.