Shinsegae to buy local furniture company for $168 mln
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South Korean retail giant Shinsegae will buy a local furniture company Casamia for KW180 billion (US$167.8 million) in a bid to tap into the country’s home-furnishing industry.
Shinsegae Department Store will sign a contract with the company’s founder “and others” to buy a 92 per cent stake in the company, as reported.
Launched as a small furnishing shop in Seoul in 1982, Casamia now has multiple brands, ranging from home decor to office furniture. Sales reached KW121.9 billion in 2016.
Shinsegae has declined to comment on the acquisition, and Korea Exchange has asked that it confirm media reports in a regulatory filing.
Questions & Answers
Q.What is the reason for Shinsegae's acquisition of Casamia?
What is the reason for Shinsegae's acquisition of Casamia?
Shinsegae is buying Casamia to enter South Korea's home-furnishing industry. The retail giant aims to tap into this market by acquiring the established local furniture company.
Q.How much of Casamia's ownership stake will Shinsegae acquire?
How much of Casamia's ownership stake will Shinsegae acquire?
Shinsegae Department Store will acquire a 92 per cent stake in Casamia. The contract will be signed with the company's founder and other parties involved in the sale.
Q.What were Casamia's reported sales figures in 2016?
What were Casamia's reported sales figures in 2016?
Casamia's sales reached KW121.9 billion in 2016. The company, which began as a small furnishing shop, has since grown to include multiple brands.
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