Octo I&C of 'BomBom Mat' Merged into Parent Company Ggumbi... Maximizing Synergy Amid Growth

Baby products specialized company Octo I&C, which operates the installation mat brand 'BomBom Mat', will be merged into its parent company, KOSDAQ-listed Ggumbi.

Ggumbi and Octo I&C disclosed on the 19th that they each held board meetings on the 18th and resolved to merge the two companies. The merger will be conducted as a 'small-scale merger without capital increase', where Ggumbi absorbs its 100%-owned subsidiary Octo I&C without issuing new shares. The effective date of the merger is August 1, 2026.

59% Revenue Growth and Triple Net Profit over 3 Years of 'Explosive Growth'... Aimed at Improving Management Efficiency

This merger is a measure to maximize management efficiency by integrating the business capabilities of Octo I&C, which has recently visualized a steep growth trend, with Ggumbi's infrastructure. According to the disclosed financial statements, Octo I&C has recorded unrivaled growth despite concerns of a downturn in the baby mat market.

Revenue surged by 59.4% in two years, from 5.28532 billion won in 2023 to 7.53906 billion won in 2024, and 8.42408 billion won in 2025. Internal stability has become even stronger. Net profit skyrocketed nearly three times (299%), from around 122.12 million won in 2023 to 487.29 million won in 2025. Accordingly, as retained earnings accumulated, total equity also significantly increased from 378.2 million won in 2023 to 1.19746 billion won in 2025, thereby strengthening financial soundness.

100% Succession of Employment... Minimizing Shareholder Burden with 'No Capital Increase'

The employment contracts of all 48 existing employees (including 28 contract workers) of Octo I&C, which will become the dissolving corporation after the merger, will be succeeded 100% by the surviving corporation, Ggumbi. The existing businesses of baby product manufacturing and wholesaling/retailing, as well as the installation mat business division, will also be maintained without abolition or change to continue brand continuity.

Since the parent company owns 100% of the subsidiary's shares, the merger ratio for this merger was calculated at 1:0. As there is no issuance of new shares, there will be no change in Ggumbi's capital or its largest shareholder even after the merger.

As it corresponds to a small-scale merger under the Commercial Act, appraisal rights will not be granted to the shareholders of Octo I&C and Ggumbi. However, if 20% or more of Ggumbi's shareholders submit a written notice of their opposition to the merger from June 2 to June 16, the merger agreement may be canceled.

An official from Octo I&C stated through this report, "We have steadily grown while securing market competitiveness with a differentiated marketing strategy that provides a one-stop process from production to installation," and added, "Through this merger, we will efficiently utilize both companies' human and material resources and reduce costs to secure an even stronger competitive edge in sales."