Solidify the unchallenged leading position by acquiring the rental business of Woongjin Corporation
 
 
- Surpassing six million accounts in Korea by integrating accounts of both companies
- Creating synergy with over 1,400 rental business workforce of Woongjin Corporation
- Taking over the business at a 25 discount per account value
- No plan to acquire “Ever Sky,” Turkish water purifier sales subsidiary of Woongjin Corporation
 
Woongjin Coway solidifies its unchallenged leading position in the health appliances market by acquiring the rental business of Woongjin Corporation. The company announced on May 17 that it will take over the rental business including customer accounts workforce as of June 30.
It is expected that the acquisition will create synergy in attracting new customers enhancing product quality, technological competitiveness, service capability. The number of domestic customer accounts will exceed six million takeover of sales workforce will also contribute to attracting more new customers.
The rental business of Woongjin Corporation started operation in March 2018 has launched innovative products such as “Pebble Water Purifier’ “Tower Water Purifier.” The number of customer accounts surpassed ten thous in just 40 days thirty thous in three months. The rental business division has over 1,400 field players &ndash 700 service professionals 700 salespersons.
Upon the completion of the acquisition, the number of customer accounts of Woongjin Coway will increase to more than four times that of the second player in the market. The number of field workforce will also exp to over 21,400 from existing about 20,000.
A total of KRW 49.5 billion was invested in the takeover. The value per account was discounted by around 25 compared with that of Woongjin Coway (market capitalization/total accounts).
Meanwhile, Woongjin Coway announced that it had no plan to acquire “Ever Sky,” Turkish water purifier sales subsidiary of Woongjin Corporation.
An official of an accounting firm specialized in M&A said “As Woongjin Coway is engaging in rental business, it is reasonable to evaluate corporate value based on value per account. The takeover was conducted at a 25 discount per account value compared with that of Woongjin Coway, which was appropriate considering the br power, product quality, service competence.”
Hae-sun Lee, the CEO of Woongjin Coway, said, “The acquisition of Woongjin Corporation’s rental business allows us to further solidify our leading position in the domestic health appliances rental sales market. By creating synergy, we will continue our growth trend.”
 
(2019.05.19)