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Hanwha to acquire Ourhome in $598 million deal

Published: 11 Feb. 2025, 19:08

CHO YONG-JUN
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Hanwha Hotels & Resorts Vice President Kim Dong-seon speaks at a brand conference for U.S. burger chain Five Guys in Seocho District, southern Seoul on June 22, 2023. [NEWS1]

Hanwha Hotels & Resorts agreed to acquire a catering company owned by members of LG's founding family, marking its controversial re-entry into the catering business after five years.

The accommodation subsidiary of Hanwha Group will acquire a 58.62 percent stake in Ourhome for 869.5 billion won ($598 million), valuing the company at approximately 1.5 trillion won, according to a regulatory filing on Tuesday. Hanwha will first acquire 50.62 percent of the company, with the remaining 8 percent being purchased through a third party before an undisclosed date to which both sides have agreed.

The subsidiary is considering financing 250 to 300 million won through the private equity fund IMM Credit Solutions.

Ourhome headquarters in Gangseo District, southern Seoul [YONHAP]

Hanwha left the food catering business when it sold off Hanwha Hotels & Resorts' division to private equity firm VIG Partners in 2020. The company’s decision to re-enter the industry is being led by Kim Dong-seon, the vice president of Hanwha’s resort unit and the youngest son of Hanwha Group Chairman Kim Seung-youn. The vice president also brought American hamburger chain Five Guys to Korea.

Koo Bon-sung and Koo Mi-hyun are both children of Koo Ja-hak, former Ourhome chairman and younger brother of former LG Chairman Koo Bon-moo. Koo Ja-hak’s two other daughters, Koo Myung-jin and Koo Ji-eun, have a 19.6 percent and 20.67 percent stake in the company, respectively.

Koo Ji-eun, who was evicted from the company’s board of directors in 2024, is known to have disagreed with the acquisition.

BY CHO YONG-JUN [[email protected]]