Blackstone NYSE:BX, a global investment firm whose affiliated private equity funds invest in companies, has agreed to make a significant investment in Futronic, a South Korean supplier of high-precision actuators used in industrial robotics and the automotive sector. The transaction values Futronic at approximately 1 trillion won, or $675 million, according to people familiar with the matter, although Blackstone did not disclose the investment amount and declined to comment on the reported valuation. The deal gives Blackstone exposure to a business operating across automotive technology, industrial robotics and motion-control systems as the firm increases its focus on the connection between artificial intelligence and the physical world.
Futronic founder Jin-ho Ko will remain chairman and chief executive officer following the investment and will work with Blackstone to accelerate the company's global expansion. Ko said Blackstone's scale and international platform could help Futronic expand its advanced mechatronic solutions and strengthen its position in actuation and motion-control technology. The continuing involvement of Futronic's founder may also provide management continuity as the company pursues its next phase of growth.
Blackstone executives highlighted Futronic's research and development, engineering capabilities and potential for rapid growth across the automotive and robotics markets. Eugene Cook, head of Korea for Blackstone Private Equity, said these capabilities leave Futronic well positioned to expand, while Blackstone Private Equity Principal Kyungmin Song identified the convergence of artificial intelligence and the physical world as an important investment theme for the firm. Investors may view the transaction as another sign of Blackstone's interest in businesses that could benefit from expanding demand for advanced robotics, automotive systems and physical AI applications.