Huons Group Embarks on Capability Innovation Through Merger of Affiliates

[Asia Economy Reporter Chunhee Lee] Huons Group is strengthening its expertise through the integration of its affiliates.

Huons Group's holding company, Huons Global, announced on the 16th that it will merge Huons Nature and Huons Natural, as well as Huons Medicare and Huons Medical, respectively, to enhance capabilities and expertise in each business sector, expand synergies, and improve operational efficiency.

The merger between Huons Nature and Huons Natural will be carried out by Huons Nature absorbing Huons Natural, with the merger process expected to be completed by January next year. The merger between the two companies is a measure to support the growth of the health functional food business, which Huons is positioning as a new growth engine. Huons expects that the expertise and production capacity of Huons Nature in the ginseng and red ginseng sectors will combine with Huons Natural's product development capabilities and online and offline sales marketing strengths to become a professional and expanded comprehensive health functional food company.

The merger of Huons Medicare and Huons Medical is aimed at consolidating capabilities in the medical device sector. By integrating Huons Medicare, which operates in the sterilization and disinfection medical device business, with Huons Medical, which handles aesthetic and therapeutic medical devices, the plan is to leap forward as a leading domestic medical device specialist company covering disinfection-sterilization, aesthetics, and therapy. In particular, as the merger is expected to increase sales scale and corporate value, the timing of the initial public offering (IPO) is also anticipated to be advanced. The merger completion between the two companies is expected in February next year. The merger will proceed with Huons Medicare absorbing Huons Medical.

A Huons Global official stated, “With the goal of becoming a 'total healthcare group,' we decided on the merger to reorganize the expanded businesses through mergers and acquisitions (M&A) and portfolio diversification, and to enhance competitiveness, expertise, and brand value of each company.” He added, “By integrating personnel and manufacturing and production facilities that were redundantly distributed across each company, we expect to achieve cost reduction and economies of scale through efficient allocation and operation of specialized personnel and equipment.”

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