LG Chem purchased a 100 percent stake in Uniseal from its parent company, Koch Enterprises, Inc., in a deal worth about 150 billion won (US$133 million), according to a person familiar with the deal who spoke on condition of anonymity because he was not authorized to speak publicly.

The acquisition strengthens LG Chem's business portfolio in materials used in the auto industry.

Currently, LG Chem is a key supplier of batteries to U.S. auto giant General Motors Co., European companies Volvo and Renault and South Korea's Hyundai Motor Group.

LG Chem Vice Chairman and CEO Park Jin-soo said his company will nurture vehicle adhesives into a global business, noting such materials are a promising business as carmakers are pushing to reduce the weight of cars.

Uniseal products are used in the transportation industry, and the automotive, heavy truck and trailer market segments account for over 80 percent of the company's business, according to Koch Enterprises. Uniseal customers include U.S. auto giants GM and Ford Motor Co.

In 2017, Uniseal sales reached about 63 billion won, LG Chem said.

The Evansville, Indiana-based company's primary manufacturing facilities are located in Evansville, Shanghai, Retsag in Hungary and Chennai in India.