Hanwha acquires Ourhome for $622 million in push to revive food business
Yun-Sang Ko
8 HOURS AGO
Ourhome showcases Korean food at SIAL Paris 2024, an international food exhibition, held Oct. 19-23, 2024 (Courtesy of News1) South Korea’s Hanwha Group has completed the acquisition of the country’s No. 2 food service and catering company Ourhome Ltd. for 869.5 billion won ($622 million), marking the conglomerate’s return to the sector after a five-year hiatus.
The deal, led by Kim Dong-seon, vice president at the group’s hospitality unit Hanwha Hotels & Resorts Co. and the youngest son of Hanwha Group Chairman Kim Seung-youn, brings a seven-month takeover process that began last October to an end.
Hanwha Hotels & Resorts said on Wednesday that it secured a 58.62% controlling stake in Ourhome, integrating the new company into the wider Hanwha Group.
Hanwha Group's headquarters Hanawha acquired the stake in Ourhome from the catering firm’s two founding family members – former Chief Executive Koo Bon-sung with 38.56% and current CEO Koo Mi-hyun with 19.28% – and other stakeholders.
Hanwha Group, a chemicals-to-defense conglomerate, exited the food service business in 2020 with the sale of its food catering subsidiary, Foodist Co., to VIG Partners, which later sold it to Sajo Group, a Korean seafood and fisheries conglomerate.
Hanwha group said the Ourhome acquisition would allow it to rebuild its competitiveness in food distribution and catering, capitalizing on its 30-year experience in the sector.
Kim Dong-seon, Hanwha Group Chairman Kim Seung-youn's third son, led the Ourhome acquisition The takeover is also expected to create synergy with Hanwha’s other businesses, including hospitality, resort and restaurant operations, it said.
“Together with Ourhome, which has a strong position in the catering and food distribution market, we aim to drive major changes not only in the domestic market but also globally,” the group said.
PART OF A SUCCESSION STRATEGY
Analysts said the move could also have implications for the conglomerate’s succession process.
Hanwha Group's three sons. From left, im Dong-kwan, Kim Dong-won and Kim Dong-seon Group leader Kim Seung-youn’s eldest son, Kim Dong-kwan, oversees the conglomerate’s defense and aerospace businesses, including Hanwha Aerospace Co. and Hanwha Ocean Co.
The leader’s second son, Kim Dong-won, leads the group’s financial services units, including Hanwha Life Insurance Co.
The acquisition of Ourhome will strengthen the youngest son’s portfolio, which now spans six affiliates, including those in retail, robotics and semiconductors.
Kim Dong-seon’s management capabilities will be put to the test with the new affiliate, analysts said.
Hanwha Group Chairman Kim Seung-youn Kim Dong-seon, the third son, has been ramping up the group’s food and beverage business.