KyungDong Navien to acquire three home appliance business rights from SK magic

[Courtesy of KyungDong Navien]

South Korea’s heating systems manufacturer KyungDong Navien Co. will acquire the business rights of gas ranges, electric ranges, and electric ovens from SK magic Co.

KyungDong Navien announced Wednesday that it signed a memorandum of understanding (MoU) with SK magic to acquire business rights in the three areas.

The estimated purchase price is around 40 billion won ($30.53 million). The two companies plan to discuss further the exact amount and timing moving forward, according to KyungDong Navien.

The acquisition is expected to allow KyungDong Navien to strengthen its kitchen appliances business, including cooktops and electric ovens.

The company has expanded its business in kitchen appliances, launching products such as gas cooktops and hoods, followed by the introduction of the 3D air hood in 2021 and a premium electric cooktop in June 2023.

KyungDong Navien expects that SK magic’s solid foundation, which is ranked first and second in market share in the gas range, electric range, and electric oven businesses, will help it expand its kitchen appliance business in the future.

After acquiring the business rights, the company plans to proceed seamlessly with deliveries to construction sites where SK magic is scheduled to deliver cooktops, electric ovens, and hoods supplied through original design manufacturing (ODM).

KyungDong Navien’s move to expand its kitchen appliance business is aimed at extending its business structure centered on boilers, water heaters, and sleeping mats to the field of home appliances.

The company also produces ventilation purifiers that can manage particle-type harmful substances such as fine dust as well as gaseous harmful substances such as radon and carbon dioxide. By linking kitchen appliances and ventilation purifiers, the company is expected to enable comprehensive indoor air quality management.

Furthermore, KyungDong Navien plans to build an integrated solution that combines heating, hot water, and indoor air quality management into one system. In line with this expansion, KyungDong Navien recently changed the name of its clean ventilation system to ventilation purifier.

“By combining our technological expertise with SK magic’s know-how, we aim to lead the kitchen appliances business as another growth area, transforming into a home appliance company,” said Kim Yong-bum, head of sales and marketing at KyungDong Navien.