Korea's massage chair maker Bodyfriend mulls acquisition of Medical Dream - Pulse by Maeil Business News Korea - Pulse News

[massage]

[Photo by Bodyfriend]

South Korean massage chair maker Bodyfriend is considering a plan to acquire a smaller competitor Medical Dream teetering on the brink of insolvency.
According to industry sources on Tuesday, Medical Dream recently entered court protection and is looking for a new owner. Much of the potential deal is at an embryonic stage, including the deal value, but Bodyfriend’s acquisition could help strengthen its R&D capabilities to better compete with a growing number of rivals.

Medical Dream, a pioneering company in the local massage chair market, started business in 1997 by importing foreign products but later shifted its focus to independent development. But its splurge on patented technology left it on the ropes. Medical Dream failed to generate a decent operating cash flow, whereas late-coming Bodyfriend continued robust growth to become dominant on eye-catching new product launches and aggressive marketing.

Medical Dream posted 21.2 billion won ($17.8 million) in sales with a tiny fraction in operating profit in 2018, while Bodyfriend generated 446.9 in sales with an operating profit of 52.2 billion won.
Boyfriend’s Lamborghini-themed massage chairs, which cost over 30 million won a piece, are manufactured in a Korean plant, but most of its products are produced under OEM contracts in China.

Bodyfriend has broadened its portfolio of massage chairs and diversified into sleeping bed and water purifier business. It has also explored global markets since 2017, spanning the U.S., China and Europe. Building on its growth and market momentum, the company filed to go public last year, but its IPO failed spectacularly.

By Shin Soo-hyun and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]