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GS Home Shopping acquires stake in U.S. kitchenware maker

GS Home Shopping acquires stake in U.S. kitchenware maker

Posted July. 13, 2017 07:17,   

Updated July. 13, 2017 07:36


GS Home Shopping has made a strategic investment in World Kitchen, a global kitchenware producer, aiming to find a breakthrough in the manufacturing sector as home shopping market slows.

GS Home Shopping said Wednesday it finalized a contract with New York-based private investment firm Cornell Capital of acquiring a 9.1 percent stake in World Kitchen. GS will be joining as a strategic investor. The acquiring stake will amount to tens of billions of won. World Kitchen owns more than a dozen brands including Corelle and Pyrex, and is No. 1 seller in North America. GS Home Shopping will become a member of World Kitchen board of members through this acquisition.

GS Home Shopping's decision comes as the TV home shopping market is stagnating while competition is intensifying. TV home shopping transactions increased 11.8 percent year-on-year in 2013, but managed to grow just 7.7 percent last year. "We've decided to go ahead with the acquisition since attracting a good brand is important in a hyper-competitive market," a GS Home shopping staff said.

Eun-Seo Park clue@donga.com