Latest news with #HanwhaHotels&Resorts
Korea Herald
15-05-2025
- Business
- Korea Herald
Hanwha Hotels finalizes W870b acquisition of Ourhome
Hanwha Hotels & Resorts, the leisure arm of Hanwha Group, has finalized its acquisition of Ourhome, capping a seven-month push to integrate the catering firm and revamp the conglomerate's food and beverage portfolio. According to the company on Thursday, it has acquired a 58.62 percent stake in the food catering giant for 869.5 billion won ($622 million). Spearheading the acquisition was Kim Dong-seon, vice president of Hanwha Hotels & Resorts and youngest son of Hanwha Group Chairman Kim Seung-youn, who has led the effort since October. In February, the company established a special purpose entity, Woori Home F&B, to facilitate the transaction while securing antitrust approval from both domestic and international regulators last month. The company sees strategic upsides to the tie-up, despite its smaller scale compared to Ourhome. Hanwha Hotels & Resorts reported 750 billion won in revenue last year, while Ourhome generated 2.24 trillion won, topping the 2 trillion mark for the first time. Hanwha's decadeslong track record in leisure and food services, including nearly 30 years in the catering business, is expected to create strong synergy with Ourhome's expertise in food-related sectors, the company explained. At the group level, the deal lays the groundwork for a wave of cross-affiliate collaboration. For one, Hanwha Foodtech, a subsidiary of Hanwha Hotels & Resorts, is expected to deepen the company's capabilities in food technology, particularly in kitchen automation and smart logistics. As part of that effort, it acquired US-based robotic pizza company Stella Pizza last year. Kim has already made waves through Hanwha Galleria, where he also serves as vice president. In 2023, he brought American burger giant Five Guys to Korea. Hanwha Galleria's ice cream unit, Betterscoop Creamery, is also set to launch its new premium brand, Benson, later this month. 'With Ourhome, we aim to drive a major transformation not only in Korea but across the global food industry,' a company official said. 'Now part of the Hanwha family, Ourhome will collaborate with various affiliates to unlock new business opportunities.'
Korea Herald
18-02-2025
- Business
- Korea Herald
Hanwha's high-stakes bid for Ourhome: growth or gamble?
Hanwha Hotels & Resorts Vice President Kim Dong-seon, the youngest son of Hanwha Group Chairman Kim Seung-youn, has recently made the acquisition of Korea's second-largest food catering company a top priority. While some view the move as a strategic expansion of Hanwha's food and beverage business, others question its feasibility. At the company's board meeting on Feb. 11, Hanwha stated, "To enhance our F&B capabilities and generate synergies with our hospitality and lodging businesses, acquiring a controlling stake in Ourhome is necessary to secure new growth engines." According to industry sources, Kim personally oversaw the due diligence process, inspecting Ourhome's factories and logistics centers nationwide. He has also reportedly expedited the stock purchase agreement process and established a task force to manage post-acquisition integration. "Previously, contract catering was largely confined to schools and hospitals in Korea. However, the sector has evolved, expanding into high-end facilities such as golf clubs, resorts and senior living communities. Additionally, given Korea's demographic challenges, global expansion in this field presents significant opportunities," said a hospitality industry official. Some industry experts believe the acquisition could help Hanwha shed its domestic-focused reputation and expand internationally. Ourhome already has a significant global presence. In 2018, it acquired in-flight catering firm Hanil America Construction Realty from Hanjin Heavy Industries & Construction Holdings for $91 million, allowing it to supply airline meals in 10 countries, including Singapore, Japan and Turkey. In 2021, HACOR secured a contract to manage dining facilities for the US Postal Service. Since joining Hanwha Galleria in 2022, Kim has actively expanded Hanwha's F&B ventures, seeking international opportunities. In 2023, he introduced the renowned US burger chain Five Guys to Korea, rapidly expanding it to key locations across Seoul. Additionally, he has pushed into food tech, rebranding Hanwha Hotels & Resorts' restaurant subsidiary as Hanwha Food Tech and acquiring US-based robotic pizza company Stellar Pizza in March 2023. "Kim is aggressively integrating AI-driven food technology, which could make Ourhome's operations more efficient. Through synergies with Hanwha Robotics, the company aims to maximize its future food and leisure capabilities," another industry source said. Despite these strategic advantages, a major hurdle remains: Hanwha's financing strategy for the acquisition. On Feb. 11, Hanwha Hotels & Resorts signed an SPA with former Ourhome Vice Chair Koo Bon-sung, the firm's largest shareholder; Chair Koo Mi-hyeon, the Koo family's eldest daughter; and two other related parties. The agreement is for a 58.62% stake in Ourhome at a price of 869.5 billion won ($602 million). However, with only approximately 130 billion won in cash reserves, Hanwha faces a significant funding gap. Private equity firm IMM Credit Solution is expected to invest 300 billion won, but the deal still falls short of the required acquisition funds. Despite Ourhome's record-breaking 2023 performance — 1.98 trillion won in revenue and 94.3 billion won in operating profit — industry experts remain skeptical about Hanwha Hotels & Resorts' ability to recover its investment. The domestic contract catering and food distribution market is highly competitive, with major conglomerates such as Samsung, Hyundai, CJ and Shinsegae dominating the sector through their own catering subsidiaries.
Korea Herald
11-02-2025
- Business
- Korea Herald
Hanwha Hotels to acquire Ourhome in W870b deal
Hanwha Hotels & Resorts announced on Tuesday that it has signed a stock purchase agreement to acquire a 59 percent stake in Ourhome, a leading Korean food catering company. In a regulatory filing, the company stated that it plans to acquire a 58.62 percent stake in Ourhome for 869.5 billion won ($598 million). Ourhome's market value is estimated at about 1.5 trillion won. This decision was made in a board meeting Tuesday morning in which discussions on the acquisition deal were finalized. The share acquisition is set to take place on April 29. Under the agreement, Hanwha will acquire 13,376,512 shares held by former Vice Chairman Koo Bon-sung, Ourhome's largest shareholder, and Chair Koo Mi-hyeon, the eldest sister in the Koo family, and two others. The former vice chairman holds a 38.56 percent stake, while the chair owns 19.28 percent. To finance the purchase, Hanwha Hotels & Resorts will invest 250 billion won, while the remaining amount will be covered by contributions from financial investors and acquisition financing. In order to acquire the Ourhome shares, the company has established a new entity tentatively named Woori Home F&B. "Woori Home F&B will assume all rights, obligations and party status related to the Ourhome stock purchase from Hanwha Hotels & Resorts before the transaction is finalized,' the company said in a statement. Once the share acquisition is completed in April, the company will proceed with a 250 billion won capital increase. The merger, led by Kim Dong-seon, vice president of Hanwha Hotels & Resorts, marks Hanwha's latest effort to expand into the food and beverage industry. The company is also exploring opportunities to integrate food technology into its operations. The latest move comes five years after it sold Foodist, the group's food distribution division, to VIG Partners. Ourhome's expertise in food-related sectors, including manufacturing, logistics and distribution, is expected to create synergies and strengthen Hanwha's food business, according to a Hanwha Group official.
