Hyundai To Sell U.S Subsidary
Feb. 20, 1998
SEOUL, South Korea (AP) _ Hyundai Electronics Co. said Friday it has agreed to sell its Symbios Logic Corp. to Adaptec Inc. of California for $775 million.
Symbios Logic, based in Fort Collins, Colo., makes semiconductors and storage systems for personal computers, workstations and telecommunications equipment.
Its products go into computers sold by Compaq Computer Corp., Sun Microsystems Corp. and Apple Computer Inc.
Other details of Hyundai's deal with Adaptec, a computer connections maker based in Milpitas, Calif. were not immediately available.
Hyundai, South Korea's No. 2 computer chip maker, planned to invest the money from the Symbios sale in its $1.3 billion semiconductor plant under construction in Eugene, Ore., company officials said.
The sale is the latest in a series of overseas investment pullbacks by South Korea's debt-ridden conglomerates, whose cash flow problems have been aggravated by the nation's financial crisis.
Last month, Hyundai said it was suspending construction of a computer chip plant in Scotland.
On Thursday, Samsung, another leading South Korean conglomerate, said it will sell its forklift-making company to Clark Co. of the United States.
Hyundai Electronics America acquired the former NCR Microelectronic Products Division from AT&T Corp. in 1995 for $340 million and changed the name to Symbios Logic.
Symbios Logic employs 781 people in research and development, assembly and testing in Fort Collins and 867 people in wafer fabrication and engineering in Colorado Springs, Hyundai officials said.
The company made a net profit of $68 million from total sales of $614 million in 1997.