Binggrae Acquires Haitai Ice Cream for 140 Billion KRW: "Will Expand Global Business"

[Asia Economy Reporter Choi Saeng-hye] Binggrae announced on the 31st that it has signed a stock purchase agreement to acquire Haitai Confectionery & Foods and Haitai Ice Cream through a board resolution.

On the same day, Binggrae acquired 1 million shares, representing 100% of the common stock of Haitai Ice Cream, with the acquisition amount disclosed as 140 billion KRW. The final acquisition timing will be determined based on the confirmation of detailed matters. Haitai Ice Cream is a newly established corporation created by a physical division of the ice cream business unit of Haitai Confectionery & Foods in January. Haitai Ice Cream's sales last year were around 180 billion KRW, making it one of the Big 4 in the domestic ice cream industry. Since 2013, it has owned several steady seller brands, including 'Bravo Cone,' which has been continuously loved by customers.

A Binggrae official explained the background of the acquisition, stating, “We expect to create synergy with our existing ice cream business by utilizing Haitai Ice Cream’s nationally familiar brands such as Bravo Cone, Nugaba, and Babamba. In particular, we anticipate further expanding our global business through Binggrae’s overseas ice cream distribution network.”

Meanwhile, Haitai Confectionery plans to focus its capabilities on core businesses through the sale of its ice cream business. A Haitai Confectionery representative explained, “We reviewed various options such as investment attraction, strategic alliances, and share sales to strengthen Haitai Ice Cream’s competitiveness, but since the spin-off, we have received active acquisition offers from numerous investors, leading to the decision to sell management rights.”

The funds raised from the sale are planned to be used for debt repayment and new equipment investment at the snack factory. Accordingly, Haitai Confectionery’s debt ratio is expected to decrease significantly. This will also enable full-scale investment in production lines that had been delayed, improving production efficiency.

A Haitai Confectionery official stated, “We plan to focus our core capabilities on the confectionery business to enhance market competitiveness and profitability and to increase shareholder value.”

This content was produced with the assistance of AI translation services.