Global private equity fund (PEF) manager Carlyle Group will acquire chicken franchise operator KFC Korea. Orchestra PE, the domestic private equity firm that has run KFC Korea, will book about three times its purchase price in profit on the sale two and a half years after the acquisition.
According to the investment banking (IB) industry on the 19th, Carlyle recently signed a stock purchase agreement (SPA) to acquire 100% equity in KFC Korea. The sale price is in the 200 billion won range. Payment of the acquisition price (closing) is expected to be completed in the first quarter of next year.
Earlier, Orchestra PE acquired KFC Korea from KG Group in 2023 for 70 billion won. Since then, it has focused on enhancing corporate value through management efficiency and profitability improvements. Last year's revenue was 292.2 billion won, and earnings before interest, taxes, depreciation and amortization (EBITDA) were about 46 billion won.
With this acquisition of KFC Korea, Carlyle will be able to pursue a bolt-on strategy (acquiring peers to generate synergies) with its existing portfolio company, coffee franchise A TWOSOME PLACE. Carlyle bought A TWOSOME PLACE for about 1 trillion won in 2021 and acquired KFC Holdings Japan in May last year.