Gaming company NXC looks to unload stroller maker Stokke

NXC has also put cryptocurrency exchange operator Korbit on the market

A Stokke store in The Galleria, a department store in Gwanggyo, South Korea
A Stokke store in The Galleria, a department store in Gwanggyo, South Korea
Jun-Ho Cha 1
2025-03-03 09:00:02 chacha@hankyung.com
Mergers & Acquisitions

NXC Corp., the holding company of South Korea’s Nexon Games Co., is looking to unload Stokke AS, a premium baby stroller brand, for around 700 billion won ($480 million) to capitalize on the recent birth rate rebound in the fast-aging country.

According to investment banking sources on Friday, NXC decided to put the baby carriage and crib manufacturer on the market in the second half of last year. It is now reaching out to potential buyers, including baby product makers and private equity firms, via accounting firms.

Stokke, often referred to as the Mercedes-Benz of strollers, has gained popularity in South Korea, alongside other premium goods for young children, defying the slowing economy.

In 2013, NXC acquired 100% of Stokke for around 3 billion Norwegian krone, or 500 billion won.

Industry observers expect NXC, the parent of Tokyo-listed game publisher Nexon Co., to ask about 700 billion won ($480 million), or 10 times its 2023 earnings before interest, tax, depreciation and amortization (EBITDA), for Stokke.

Norway-based Stokke was founded by Georg Stokke in 1932
Norway-based Stokke was founded by Georg Stokke in 1932

Since its acquisition, Stokke’s earnings have been on the steady rise. In 2023, its revenue spiked 31.5% to 2.92 billion krone from the year prior, with the EBITDA up 26.1% on-year to 593.8 million krone.

South Korea’s fertility rate snapped its downward spiral last year, bouncing back for the first time in nearly a decade. It plunged to a record low in 2023.

However, the intensifying competition in the premium baby product market and the low birth rate in South Korea – the world’s lowest – suggest Stokke may now be at its earnings peak, said industry observers.

NXC has also put Korbit, a cryptocurrency exchange operator, up for sale to focus on the gaming business.

Write to Jun-Ho Cha at chacha@hankyung.com
 

Yeonhee Kim edited this article.
#Nexon #Stokke #NXC #Korbit #M&As #mergersandacquisitions #cryptocurrency

South Korea welcomes more babies after downward birth rate spiral

South Korea welcomes more babies after downward birth rate spiral

A well-baby nursery in a local hospital in South Korea (Courtesy of New1 Korea)  South Korea’s fertility rate bounced back last year for the first time in nearly a decade following a surge in marriages, raising hopes for a turnaround in the country’s demographic crisis. Korea&r

Nexon becomes 1st Korean game publisher with over 4 trillion won in sales

Nexon becomes 1st Korean game publisher with over 4 trillion won in sales

Nexon launched Dungeon Fighter Mobile in China in 2024 Nexon Co., the parent of Nexon Games Co., became the first Korean game developer to achieve the 4 trillion won ($2.8 billion) sales milestone in 2024, while its local peer Krafton Inc. posted its largest-ever operating profit.Their efforts

Premium children's brands buck falling birth rate in Korea

Premium children's brands buck falling birth rate in Korea

Shoppers line up outside the pop-up store of Kidikidi at Hyundai Department Store Pangyo on its opening day on Feb. 19, 2024 Premium children's clothing and food brands have bucked the economic slowdown in a country grappling with the world’s lowest birth rate as South Korean retailers an

S.Korea’s fertility rate hits new world-record low in 2023

S.Korea’s fertility rate hits new world-record low in 2023

Trapped in a downward spiral, South Korea saw the country’s total fertility rate hit a new record low of 0.72, also again the world’s lowest, last year, bracing for a fast-approaching so-called demographic cliff as a growing number of people choose not to have children.According to

Korea to sell $3.6 bn stake in NXC via private offering

Korea to sell $3.6 bn stake in NXC via private offering

Nexon Korea headquarters in Pangyo, Gyeonggi Province (Courtesy of Yonhap News) The South Korean government is seeking to sell a 4.71 trillion won ($3.6 billion) stake in gaming giant NXC Corp. via private placement as the authorities failed to find a potential second-largest shareholder of the

High- and low-income S.Koreans alike reluctant to have babies: Survey

High- and low-income S.Koreans alike reluctant to have babies: Survey

A newborn baby care center in a Korean hospital (Courtesy of Yonhap) South Koreans in low- and high-income brackets alike are unwilling to have children due to either insufficient time or money, found a recent survey of people aged 25 to 45 in Asia’s fourth-largest economy grappling with

(* comment hide *}