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Lotte Shopping to acquire furniture maker Hanssem with IMM PE

The takeover expected to intensify competition among department stores in Korean furniture market

By Sep 10, 2021 (Gmt+09:00)

Hanssem Design Park in a Lotte Shopping’s branch
Hanssem Design Park in a Lotte Shopping’s branch

Lotte Shopping Co., South Korea’s top department store operator, is set to acquire Hanssem Co. with IMM Private Equity.

IMM PE selected Lotte Shopping as a strategic investor to jointly buy a stake worth 1.5 trillion won ($1.3 billion) in the country’s largest furniture and home furnishing company, according to the investment banking industry sources on Sept. 10. Lotte Shopping is slated to invest 299.5 billion won as a limited partner for a fund IMM PE set up for the takeover.

Lotte Shopping beat major local companies such as LX Hausys Ltd. in a competition for the deal amid strong growth potential of the home decorations market amid the COVID-19.

Lotte Group was known to decide to join the acquisition as its electronics retailer Lotte Himart and Lotte Department Store are expected to create synergy with Hanssem's furniture business. Its interior design business is also likely to generate synergy with Lotte Engineering & Construction Co.

The move is predicted to intensify competition among major retailers including department stores in the local furniture and home furnishing market. Shinsegae Group has a domestic furniture brand Casamia Co., while Hyundai Department Store Group also owns Hyundai Livart Furniture Co.

IMM PE is scheduled to sign a share purchase agreement (SPA) with Hanssem next week. IMM PE, with $5.4 billion in assets under management, signed a preliminary agreement in July to take over a 30.21% stake in Hanssem from its founder and honorary chairman, as well as from other key shareholders. The stake comes with the management rights.

Write to Chae-Yeon Kim at

Jongwoo Cheon edited this article.
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