Hanwha finalizes $637 million acquisition of catering firm Ourhome

SEOUL, May 15 (AJP) - Hanwha Group has completed its acquisition of catering firm Ourhome for 869.5 billion won (approximately $637 million), expanding its presence in the food services sector in one of the country’s most notable recent mergers.

The deal, announced Thursday by Hanwha Hotel & Resort, gives the conglomerate a controlling 58.62 percent stake in Ourhome, marking the end of a seven-month negotiation and due diligence process that began in October.

The acquisition was spearheaded by Kim Dong-seon, vice president of Hanwha Hotel’s Future Vision Division and the youngest son of Hanwha Group Chairman Kim Seung-yeon. With the transaction now complete, Ourhome officially becomes part of the sprawling Hanwha corporate family.

The merger has drawn attention within the South Korean business community for what some analysts have described as “a shrimp swallowing a whale,” referencing the disparity in size between the two companies.

Ourhome, a leading player in catering and food distribution, reported revenue of 2.24 trillion won in 2023 — more than double Hanwha Hotel & Resort’s 750.9 billion won in sales during the same period.

To facilitate the acquisition, Hanwha Hotel & Resort established a special purpose vehicle, Woorijib f&b, earlier this year. Regulatory approvals for the deal were secured from both domestic and international authorities last month.

Hanwha said it plans to integrate Ourhome’s scale and distribution capabilities with its own expertise in food service, drawing on nearly three decades of experience in the sector through its subsidiary Hanwha Foodtech.

“We will lead the transformation of both domestic and global food markets together with Ourhome, which has shown excellence in catering and food distribution,” a Hanwha Hotel & Resort spokesperson said in a statement.

The company also emphasized plans to accelerate automation in commercial kitchens and pursue collaborations with other Hanwha affiliates, viewing technological innovation as key to shaping the future of the food industry.

Candice Kim candicekim1121@ajupress.com