On 22nd March, South Korea’s Hyundai Department Store announced that it will acquire a 30 percent stake in Zinus, a Korea-based furniture and mattress company, for 74.7 billion won (US$638.4 million).
SEE ALSO: L’OCCITANE acquires Australian beauty brand Grown Alchemist
Separately, Hyundai Department Store agreed to buy new Zinus shares worth 120 billion won to finance construction of the mattress maker’s third factory in Indonesia.
The acquisition aims to diversify Hyundai Department Store business portfolio in furniture and home interior operation. HDS plans to expand Zinus’ distribution network through its multiple stores and online malls (e.g., thehyundai.com). To boost Zinus brand recognition, it aims to set up experience centers at stores/outlets and create dedicated spaces online.
Founded by Lee Yun-jae in 1979, Zinus is a Korea-based furniture and mattress company that operates businesses in the U.S., Canada, Australia, China and Japan. It is the No. 1 mattress seller on e-commerce platform Amazon, The U.S. market accounts for 87 percent of Zinus’ total sales and global market 97 percent.
SEE ALSO: Rainforest acquires Singapore’s baby care brand NatureBond
Zinus founder Lee and family own 38.21 percent of Zinus shares. Hyundai Department Store will acquire 30 percent from them, while Lee will continue to take part in management as head of the board with the remaining 8.21 percent stake.