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Hanwha Hotels & Resorts eyes $600M acquisition of catering company

Published: 23 Dec. 2024, 18:28

LEE JAE-LIM
[email protected]

Hanwha Hotles & Resorts Vice President Kim Dong-seon speaks at a brand conference for U.S. burger chain Five Guys in Seocho District, southern Seoul in June 22, 2023. [YONHAP]

Hanwha Hotels & Resorts is looking to acquire a controlling stake in a domestic catering company owned by members of LG’s founding family for 860 billion won ($592 million), in line with the conglomerate’s broader strategy identifying food tech as a future growth driver.

The lodging company is at the due diligence stage with an aim of signing a stock purchase agreement early next year to acquire management rights in Ourhome, according to local reports.

Following the reports, a Hanwha Hotels & Resorts spokesperson briefly commented that it is “reviewing various business opportunities, but nothing has been finalized” yet.

The primary target for acquisition are the 57.84 percent stake held by Ourhome’s former vice chairman, Koo Bon-sung, and current CEO Koo Mi-hyun. Both are children of Koo Ja-hak, former Ourhome chairman and younger brother of former LG Chairman Koo Bon-moo.

The entire value estimate of Ourhome is reported to be 1.5 trillion won.

The deal is being spearheaded by Kim Dong-seon, the vice president of Hanwha’s resort unit and the youngest son of Hanwha Group Chairman Kim Seung-youn.

The move is considered an effort by the Hanwha affiliate to return to the food catering business, which it exited in 2020 when its sold off the division that was under Hanwha's resort unit to private equity firm VIG Partners.

In February, Hanwha Hotels & Resorts renamed its dining subsidiary Hanwha Foodtech, signaling its shift in focus to food technology. In May it opened a food tech research and development center in Pangyo, Gyeonggi.

The Hanwha vice president has expanded the group's foodtech portfolio through acquisitions and strategic partnerships this year, including the full acquisition of U.S.-based robotic pizza brand Stellar Pizza. Additionally, Hanwha Robotics, of which Hanwha Hotels & Resorts holds a 32 percent stake, partnered with CJ Freshway to introduce automation in catering facilities.

BY LEE JAE-LIM [[email protected]]