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| Acquisition of NST (Namyoung Special Transportation) | 2008-01-25
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Acquisition of NST (Namyoung Special Transportation) M&M corp. has decided to acquire NST, expecting to further upgrade logistics business. NST is a logistics company specialized in handling completely built automobiles. Founded in 1992, NST started its business in automobile maintenance and tow truck operation market and now has turned into a leader in automobile transportation market. Also, in PDI (Pre-Delivery Inspection) market, NST is actively expanding its business. Especially, recent trend of surging imported automobile market as well as revitalization of domestic automobile market is only helping NST to expand business. In 2006, NST marked at 13 billion KRW of sales and 1.65 billion KRW of net income before tax. M&M corp. has decided to acquire this company with 9.7 billion KRW for 89.6% stake. An M&M source said “acquisition of NST has wiped out some of recent speculation that M&M corp.’s listing to KOSDAQ was deceitfully intended to hype the stock and eventually resell them. The acquisition proves that M&M is continuously looking out for new business opportunities.” The source stressed that the new automobile logistics capability will strengthen M&M’s existing logistics business. The acquisition not only satisfies M&M’s strategy to expand logistics business in specialized area but also provides with stronger nationwide network through NST’s logistics bases in Daejeon, Busan, Hwaseong, etc. The acquisition is deemed to be a successful strategy by M&M which has achieved stable growth.
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