Samchully Co. signed a deal to acquire Sung Gyung Food. Samchuly joined the open sale of Sung Gyung Food last year but dropped out once before recently returning as the preferred bidder. With this Sung Gyung Gim acquisition, Samchuly is expected to accelerate its expansion into the food and beverage (F&B) business.
Samchuly said on the 26th that it signed a contract to purchase the entire 100% equity in Sung Gyung Food held by private equity fund (PEF) manager Affirma Capital for 119.48 billion won.
Samchully Co. mainly operates energy businesses, including city gas supply, but has also entered the food and beverage business through its affiliate SL&C. SL&C operates the Chinese restaurant franchises Chai797 and Hohosum, and the Korean restaurant franchises Jeongyukjeom and Seorijae.
Sung Gyung Food is a gim manufacturer founded in 1994. It is well known through "Jidopyo Sung Gyung Gim." Affirma Capital acquired Sung Gyung Food for 151 billion won at the end of 2017.
Samchuly pursued the acquisition of Sung Gyung Gim once last year but withdrew the plan due to price negotiations. Affirma Capital looked for new acquisition candidates early this year, but talks reportedly gained momentum as Samchuly returned to the negotiating table.
Sung Gyung Gim has recently shown strong sales growth. Sales stood at only 65.6 billion won when Affirma Capital acquired the company in 2017, but rose to 123.6 billion won last year. This year's sales are also expected to reach around 130 billion won.
A Samchully Co. official said, "In the year we mark our 70th anniversary, acquiring Sung Gyung Food further strengthens our lifestyle and culture portfolio," adding, "We plan to seek mid- to long-term growth strategies for Sung Gyung Food, enhance its global competitiveness, and do our utmost to quickly establish it as one pillar of the group's lifestyle and culture business."