Hanwha agrees to buy 60% stake in Ourhome for $599 mn

South Korea’s Hanwha Group, which is seeking to re-enter the catering market five years after leaving the sector, has agreed to buy a nearly 60% stake in the country’s No. 2 catering and food ingredient supply company Ourhome Ltd. for 869.5 billion won ($599 million).

Its hospitality unit Hanwha Hotels & Resorts Co. announced on Tuesday in a regulatory filing that it signed an agreement to acquire a 58.62% stake in Ourhome from the latter’s two founding family members – former Chief Executive Koo Bon-sung with 38.56% and current CEO Koo Mi-hyun with 19.28% – and others for 869.5 billion won.

The company will chip in 250 billion won to take over Ourhome, with the remaining financed by financial investors and acquisition loans, the company said.

As part of the takeover, Hanwha Hotels & Resorts will also set up a new entity, tentatively called Ourhome F&B, which will eventually control Ourhome once the takeover deal is completed.

RETURN TO CATERING IN FIVE YEARS

If Hanwha succeeds in acquiring Ourhome, it would mark its comeback to the catering and food ingredient market five years after it sold off its own food ingredient and catering service provider Foodist Co. to VIG Partners for about 100 billion won in 2020.

Kim Dong-seon, vice president of Hanwha Hotels & Resorts and also the third son of Hanwha Group Chairman Kim Seung-yeon, has been leading the Ourhome takeover deal, betting on stable cash generation from catering and food ingredient-supply services.

Ourhome is also expected to create synergy with Hanwha’s new mainstay food-tech business.

Since Vice President Kim joined Hanwha Galleria Corp. in 2022, Hanwha Group’s retail and F&B business has been reinforcing F&B business.

It introduced the Five Guys burger chain in Korea in 2023 and another US food company Stellar Pizza, a robot-made pizza brand, in 2024.

Kim doubles as vice president of Hanwha Galleria.

According to Hanwha Hotels & Resorts' board minutes about the board’s approval for the Ourhome stake purchase agreement on Tuesday, Hanwha has decided to place Ourhome under its wing to secure a new growth driver with the enhanced F&B business that can create synergy with its accommodation business.

Hanwha has been mulling the takeover since early 2024 and started talks for the deal in June when Koo Mi-hyun, the eldest daughter of the founding family and stay-at-home mother, was appointed as CEO of Ourhome.

BUMPS AHEAD

Hanwha plans to complete the acquisition of Ourhome’s 58.62% stake by April 29.

But the deal closing date is pending, considering that Ourhome’s other founding family members holding the remaining stakes oppose Hanwha’s takeover.

Koo Ji-eun, the youngest daughter with a 20.67% stake, led Ourhome from June 2021 to June 2024 but failed to serve another term amid the intensifying feud with her brother and the current CEO.

Their sister Koo Myung-jin has 19.6%.

Former CEO Koo Ji-eun could file an injunction against the major stake sale deal between Hanwha and her older siblings. 

Write to Tae-Ung Bae at btu104@hankyung.com

Sookyung Seo edited this article.