Samsung Forms ‘S-Printing Solution’ Company Prior to Sale to HP; Compensates Samsung Employees for ‘Job Security’ Issues
The Korea Times reports that Samsung Electronics of Seoul, Korea, said it’s a new subsidiary, called “S-Printing Solution,” that separates its printer business from Samsung Electronics. Samsung is scheduled to sell its printer business to HP Inc. for $1.05 billion, as it seeks to “dispose of less profitable businesses and strengthen core activities.”
Kim Ki-ho, who had headed Samsung Electronics’ printing business division as an executive vice president, will lead the subsidiary.
“We will strengthen the leadership in the printer industry by escalating expertise in this sector,” Kim said. “After the merger, we expect to seek new growth engines through the integration of our product lineup and continuous expansion of investments.”
At a directors’ meeting on September 12, 2016, Samsung Electronics decided to spin off the printer business division as a separate subsidiary and sell 100 percent of its stake, including related assets overseas, to HP Inc.
Both Samsung and HP Inc. expect to complete the merger by the latter half of next year.
The Korea Times also reports that: “Even after the merger, HP will keep the Samsung brand in the Korean market. This means the U.S. enterprise will no longer sell its printers under the HP name when the merger is completed.”
S-Printing Solution manufactures printers and copier/MFPs in South Korea and China and is said to have more than 50 sales branch offices around the globe. It posted 2 trillion won in sales last year. Samsung says it it will continue to provide its printing software such as its Smart UX center Android-based touch screen.
The Korea Times also notes that after Samsung announced it was selling its printer business, Samsung employees protested the decision, arguing that it may threaten their job security.
But, after discussions between labor and management, some 6,000 employees will “tentatively: continue to work at the Samsung Electronics site. Samsung Electronics also agreed to provide an average of 60 million won per employee (approximately $52,000 U.S.) as compensation “for not guaranteeing their job security.”
HP Inc. announced its plans to purchase Samsung’s Printing Business group in September 2016, and Samsung Electronics’ board of directors has approved the deal.
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- September 2016: This Week in Imaging: Will Better, Less Costly Service, Big Data Pave the Way for HP into A3 Copier/MFP Market?
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- September 2016: HP Set to Purchase Samsung’s Printer Group for $1.05 Billion As it Prepares for Assault on Copier Market