E&F, IS Dongseo Pursues Acquisition of '伊 Bopi' After Acquiring Inus

Bolt-on Strategy in Building Materials Sector
Enhancing Corporate Value through Global Market Expansion
Acquisition Targets Include Italy's Fantini
Domestic Faucet Companies Dada and Daros Also Considered

[Asia Economy Reporter Lim Jeong-su] Private equity firm E&F Private Equity (E&F PE) is pursuing the acquisition of the bathroom business division of Italian comprehensive interior company Boffi. This is part of a bolt-on strategy to enhance corporate value by acquiring global companies in the same industry after acquiring IS Dongseo's bathroom building materials business 'INUS'.

According to the investment banking (IB) industry on the 29th, E&F PE is pushing forward with a plan to acquire Boffi's bathroom business division through a spin-off. This is to create synergy with INUS, a newly established company spun off from IS Dongseo. E&F PE is expected to complete the acquisition of INUS shares around July.

Boffi is a representative Italian comprehensive interior company with an 86-year tradition, established in 1934. It owns a factory of about 7,500 pyeong near Milan. Currently, it operates businesses including kitchenware, bathroom products, general furniture, interior, and other home accessories. Annual sales are estimated to be around 50 million euros (EUR).

It is known that Roberto Gabazzi, CEO of Boffi, has a very strong intention to enter the Asian market. By selling part of Boffi's business division to E&F PE, it is interpreted as an intention to expand its position in the Asian market together with INUS and others. INUS is also expected to be able to enter the global market.

E&F PE has also put Fratelli Fantini, an Italian manufacturer, on the acquisition target list. Fantini, established in 1947, specializes in bathroom and kitchen faucets. Although it has a high share in the local domestic market, it has recently increased its global sales share by expanding into 65 countries. Domestically, it supplied products to Lotte World Tower through the online store Duomo&co.

Additionally, E&F PE is pursuing the acquisition of major domestic faucet companies. Targets include Dada, Daros, Aboc&b, JCL Industry, and Samwon Cobra.

Once the related company acquisitions are completed, E&F PE will firmly hold a comprehensive interior portfolio. It plans to create synergy with previously acquired companies such as Korea Changho, a window specialist, and Daesang Techroll, an eco-friendly building materials company.

After acquiring INUS, E&F plans to exit its holdings within the next five years through sales (M&A) or initial public offerings (IPO). An IB industry official said, "E&F is currently proceeding with acquisition financing for INUS," and added, "Once the acquisition is completed, the acquisition of domestic and overseas companies in the same industry as part of the bolt-on strategy will also be actively pursued."