Private equity fund (PEF) manager Orchestra Private Equity (PE) will acquire the budget coffee franchise MAMMOTH COFFEE.
On the 8th, according to the investment banking (IB) industry, Orchestra PE signed a stock purchase agreement (SPA) to acquire a controlling equity stake in MAMMOTH COFFEE LAB, which operates MAMMOTH COFFEE. Deloitte Anjin Accounting Corporation oversaw the deal.
The acquisition targets are 100% of the MAMMOTH COFFEE LAB equity held by representatives Kim Beom-su and Choi Kyung-hwan and others, and the entire equity in Seojin Roasters, a MAMMOTH COFFEE coffee bean roasting company. The purchase price is said to be about 100 billion won.
MAMMOTH COFFEE is a budget coffee franchise that began in 2012 in Hongdae, Seoul. It operates about 900 franchise stores nationwide. Last year, MAMMOTH COFFEE LAB's consolidation revenue was tallied at about 110 billion won.
Orchestra PE is regarded as a PEF manager strong in consumer goods investments such as food and beverage. Banolim Pizza is a representative portfolio company, and it recently sold KFC Korea to global PEF manager Carlyle.
After acquiring MAMMOTH COFFEE, Orchestra PE plans to accelerate its push into overseas markets, including Japan. MAMMOTH COFFEE currently operates two stores in Japan.
Domestic budget coffee franchises are emerging as major investment targets for PEFs. In 2021, Premier Partners acquired Mega Coffee, the No. 1 budget coffee franchise in Korea.
On 2024, Philippine fast-food company Jollibee Foods, together with domestic PEF manager Elevation PE, acquired COMPOSE COFFEE for 470 billion won.