The takeover battle for Korea’s largest home furnishing company is heating up.
With the entry of Korean retail giant, LX Group, the takeover competition for HANSSEM Home is intensifying. Earder, Súd-Korea syn Shinsegae Department Store, Hyundai Livart, in dochterûndernimming fan Hyundai Department Store, and Korea’s Lotte announced their intention to acquire HANSSEM in conjunction with South Korean private equity firm IMM PrivateEquity (IMM), but with the addition of LXHausys, in boumaterialen bedriuw eigendom fan LX Group (ienris diel fan LG), ien fan Korea syn top 50 bedriuwsgroepen, the takeover is expanding. The takeover camp is expanding.
If LX Hausys acquires HANSSEM, the number one company in the interior design and building materials industry, the landscape of the Korean building materials and interior design industry will be shaken up dramatically. The market share of the top players would be recalculated.
According to Korean media sources, LX Hausys held a board meeting on 6 September and announced that it would invest 300 miljard won (RMB 1.7 miljard) as a strategic investor in a private equity fund that IMM plans to set up to acquire HANSSEM. lykwols, de definitive ynvestearring is noch net befêstige.
Lotte, Shinsegae and Hyundai Department Store Group have already announced their plans to participate in the acquisition. LX Hausys is considered to have the most competitive advantage given the synergies with HANSSEM’s business.
With the recent divestment of LX Group from LG Group, its business scope has been expanded from traditional building materials to the whole house. Building materials account for approximately 70% fan LX Hausys’ ferkeap, dekkende finsters, doarren, flooring, panels, artificial marble and more. The division recorded sales of KRW 659.6 billion in the second quarter of this year, op 25% Jier-yn-jier. LX Hausys hat it grutste merkdiel yn 'e finsterkategory foar unreplik guodprojekten yn Korea. It also has strength in high value-added product lines such as marble kitchen sinks and PF insulation.
HANSSEM has an overwhelming presence in the Korean retail market, having started with kitchen furniture in 1970 and then interior furniture in 1997, and has now expanded its business to include building materials such as bathrooms, finsters en flier. It is currently the number one market player in Korea in kitchen furniture and interior furniture. Syn kearn dealers, quality shops and the number of shops are the most important reasons for attracting the acquirer.
Neffens Koreaanske media rapporten, HANSSEM has showrooms and oversized experience centers in 15 key locations in the areas of Bangbae-dong, Seocho-gu, Seoul, Nunhyeon-dong, Gangnam-gu, Pangyo-dong, Daegu and Hanam-si, Korea. HANSSEM products are exclusively available at these locations, as well as 550 online shops for re-house remodeling, 240 kitchen furniture shops and 80 flagship interior design shops.
HANSSEM employs 8,000 people specializing in remodeling and 2,500 in interior design sales. De ferkeap fan it bedriuw ferline jier (267.5 miljard KRW) mear as ferfjouwerfâldige fan it foarige jier (65 miljard KRW), the highest result since its founding. Syn online kanaal, the HANSSEM Mall, dy't ynformaasje jout oer it oanpassen fan nije wenten, moving houses and children’s rooms, has seen positive sales growth since the first quarter of last year. It lûkt op it stuit 3 miljoen klanten per moanne.
Yn 2020, its B2C (remodeling and kitchens) division saw a 23% year-on-year increase in sales. Fan dit, Re-hûs, which offers total remodeling solutions, groeide troch 33.3%. HANSSEM’s kitchen sales for second homes account for 27.5% of total sales by 2020. Together with the 30.6% of online and offline sales from the sale of furniture and home furnishings, the B2C business accounts for 69.1%.
HANSSEM’s Revenue for FY2020 |
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Key accounting data | 2020 | 2019 |
Revenue | 2,067,469 | 1,698,372 |
Gross profit | 542,309 | 473,522 |
Operative winst | 93,107 | 55,772 |
Ynkommen foar belesting | 95,490 | 74,459 |
Net profit growth | 66,841 | 42,715 |
Groei yn totale aktiva | 1,229,510 | 1,202,638 |
Increase in total liabilities | 600,608 | 589,339 |
Totaal oantal oandielhâlders | 628,902 | 613,299 |
LANG | 5.3% | 3.6% |
ROE | 10.4% | 7.0% |
Total current ratio | 118.5% | 117.5% |
Total debt ratio | 95.6% | 96.1% |
Totale lieningen en obligaasjes te beteljen | 5.4% | 5.60% |
Earnings per share Dividend per share | 3,766 | 2,423 |
Compiled by Kitchen News from public data | 1,300 | 1,200 |
Kitchen and Bath Information based on public data
Yn it twadde kwart fan 2021, sales and operating profit increased by 9.6% en 22.6% respectively compared to the previous year. Remodeling segment sales increased by 24.6 percent year on year.
HANSSEM’s Performance in the First Half of 2021 |
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Key Accounting Data | '20.2 Q | '20.3 Q | '20.4Q | ‘21.1Q | '21.2 Q | Groei |
Ferkeap | 5,190 | 5 037 | 5,521 | 5 531 | 5 687 | +9.6% |
Operating Profit
Profit Before Tax |
226 | 237 | 296 | 252 | 277 | +22.6% |
4.3% | 4.7% | 5.4% | 4.6% | 4.9% | +0.6%p | |
Profit And Loss For The Period | 211 | 266 | 300 | 269 | 321 | +52.1% |
4.1% | 5.3% | 5.4% | 4.9% | 5.6% | +1.5%p | |
Groei
Remodelling |
145 | 190 | 203 | 196 | 243 | +67.6% |
2.8% | 3.8% | 3.7% | 3.6% | 4.3% | +1.5%p | |
Thús | 1,911 | 1,998 | 2,291 | 2,080 | 2,382 | +24.6% |
B2b | 1,558 | 1,576 | 1758 | 1 902 | 1 671 | +7.0% |
Other | 1,087 | 963 | 973 | 1,047 | 1,079 | -0.8% |
Ferkeap | 634 | 500 | 499 | 502 | 555 | -12.4% |
Kitchen and Bath Information based on public data
Nettsjinsteande de groei yn grutte, HANSSEM’s overseas subsidiaries have not been as successful. The sales growth rates of HANSSEM’s US and Chinese subsidiaries have also slowed down each year for the past three years. Ferline jier, sales of the two subsidiaries fell by 10.2% en 3.9% respektivelik, while the Chinese subsidiary experienced a double-digit decline. The decline continued in the first and second quarters of this year as well with negative growth of 17.3% en 45.7%.
HANSSEM was already present in China in the early 1990s when it established Beijing HANSSEM Home Products Co Ltd and invested in a cabinet manufacturing plant in Beijing in 1995. It undertakes engineering business and has joined forces with headline companies in the pan-home furnishing industry to develop some engineering projects.
It was found that the shareholder of Beijing HANSSEM Home Products Co Ltd, Hansem (Sina) Investment Co Ltd, had increased its registered capital in 2020, but this year Beijing HANSSEM Home Products Co Ltd had a succession of changes in legal representatives, direkteuren, shareholders and other members in February.
It is worth noting that earlier this year there have been media reports that most of the Korean executives of HANSSEM stationed in China have been withdrawn one after another in late 2018 en betiid 2019. Some of the Chinese employees of Chinese origin are looking for their next homes, and some have even already found their next homes. They are only awaiting the arrival of significant redundancy compensation.
De earder oankundige deal foar IMM om a 30.21% stake en behear rjochten is nei alle gedachten wurdich 1.5 triljoen won (RMB 8.3 miljard).
IMM sil Lotte's en LX Hausys beoardielje’ investment and identify a partner as early as mid-September. Op it stuit, Lotte hat offisjeel bekend makke dat it is “partisipaasje beskôgje” en LX Hausys hat oankundige dat it sil ynvestearje 300 billion KRW as a strategic investment. Following the completion of the acquisition of HANSSEM, IMM ferwachtet it te ûntwikkeljen ta de grutste operator yn 'e online en offline indoor thúsmerk.