Last month, 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 US$638.4M.
Separately, Hyundai Department Store agreed to buy new Zinus shares worth 120bn 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 centres 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 US, Canada, Australia, China and Japan. It is the No. 1 mattress seller on e-commerce platform Amazon, the US market accounts for 87 per cent of Zinus’ total sales and global market 97 per cent.
Zinus Founder Lee and family own 38.21 per cent of Zinus shares. Hyundai Department Store will acquire 30 per cent from them, while Lee will continue to take part in management as head of the board with the remaining 8.21 per cent stake.
