Kyungdong Navien Signs Agreement to Acquire Gas and Electric Range and Electric Oven Business Rights from SK Magic

SK Magic to Sell Existing Products Through Sales Distributors
Switching to 'Navien Magic' Brand After Production Line Relocation in Second Half

On the 8th, Kyungdong Navien signed a contract to acquire the business rights of gas and electric ranges and electric ovens from SK Magic. Both companies held board meetings to approve the contract details. The acquisition amount is 37 billion KRW.

After the contract, Kyungdong Navien will first sell gas and electric range and electric oven products as SK Magic's general distributor. Then, in the second half of this year, the production line for these products will be relocated to Kyungdong Navien's Pyeongtaek factory, and after completing the necessary permits, the brand will be changed to 'Navien Magic' early next year.

With this acquisition as a turning point, Kyungdong Navien will accelerate its 'air quality management' business. Since 1988, Kyungdong Navien has contributed to air quality management by developing the first 'condensing' technology in Asia. In fact, condensing boilers reduce emissions of nitrogen oxides, carbon monoxide, and carbon dioxide?the main causes of fine dust and air pollution?by 87%, 70%, and 19% respectively, contributing to creating a pleasant urban environment and protecting the global environment.

Kyungdong Navien plans to advance one step further from outdoor air quality management to full-scale indoor air quality management. Since 2021, Kyungdong Navien has launched the '3D Air Hood' and gas ranges, as well as the premium electric range, the All-Metal Induction Cooktop, and changed the paradigm of the indoor air quality management market with the 'Ventilation Purifier Kitchen Plus,' which links these product lines with ventilation purifiers. Additionally, through its subsidiary Kyungdong Everun, it acquired the assets of the range hood manufacturer 'Ribechun,' expanding its range hood manufacturing base.

Through this contract, Kyungdong Navien is expected to maximize synergy between businesses. Since SK Magic’s gas and electric ranges and electric ovens, the acquisition targets, all secure stable market shares, linking them with ventilation purifiers can provide comprehensive indoor air quality management in various situations such as cooking. Moreover, bundling these products with boilers allows for more aggressive targeting of the B2B market, which is also positive.

Kim Yong-beom, Chief Sales and Marketing Officer of Kyungdong Navien, stated, “Kyungdong Navien, which has led air quality management through condensing boilers, is transforming into an ‘air quality management solution company’ based on ventilation purifiers. Through this acquisition, we will strengthen synergy between businesses and expand consumer choices to establish ventilation purifiers as the standard for air quality management.”

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