Samchully Co. has decided to acquire Sung Gyung Food, a laver maker. It comes a little over a year after it dropped out midway from the public sale of Sung Gyung Food last year. It is seen as a strategy to expand its business into food and beverage (F&B).
On the 24th, according to the investment banking (IB) industry, private equity fund (PEF) manager Affirma Capital selected Samchully Co. as the preferred bidder for the sale of 100% of its equity in Sung Gyung Food. The two sides have also signed a memorandum of understanding (MOU) for the deal.
Samchully Co. is said to be conducting due diligence on Sung Gyung Food. Once due diligence is completed, follow-up procedures such as a stock purchase agreement (SPA) are expected to proceed. The sale price of Sung Gyung Food is cited at about 200 billion won.
Samchully Co.'s main business is energy, but it also operates an F&B business through its affiliate SL&C. SL&C runs the Chinese food franchises Chai797 and Hohosum, and the Korean food franchises Jeongyukjeom and Seorijae.
Founded in 1994, Sung Gyung Food has solidified its position in the domestic seasoned laver market with the "Jidopyo Sung Gyung Gim" brand. Affirma Capital acquired Sung Gyung Food for 151 billion won at the end of 2017. Sales, which were 65.6 billion won in 2017, increased to 123.6 billion won last year.