U.S. burger brand "Five Guys" signed a memorandum of understanding (MOU) with a private equity fund (PEF) to sell equity five months after it was put up for sale.
Five Guys is a brand brought to Korea in June 2023 by Kim Dong-Sun, the third son of Hanwha Chairman Kim Seung-youn, who serves as executive vice president and head of future vision at Hanwha Galleria.
Hanwha Galleria disclosed on the 17th that it signed an MOU with H&Q Equity Partners (H&Q Equity Partners) regarding an equity sale. It plans to sign a definitive agreement after due diligence.
H&Q Partners is known as a private equity fund that reaped about an 8.5-fold investment gain through the acquisition of JOBKOREA. In 2023, during the management control dispute at Hyundai Elevator, Hyundai Group Chair Hyun Jeong-eun also stepped in as a white knight.
Hanwha Galleria has promoted the sale of equity in FG Korea, a 100% subsidiary that operates Five Guys, since July this year. FG Korea holds the business rights for Five Guys in Korea and Japan.
Five Guys has drawn attention as the first new business led by Executive Vice President Kim Dong-Sun. Kim visited Five Guys' headquarters to secure the opening of stores in Korea and actively took part in external events to establish the brand.
Since entering the Korean market, Five Guys has continued to expand its footprint, including store count and revenue. Last year's revenue was 46.5 billion won, up 365% from a year earlier, and operating profit turned to black at 3.4 billion won.
Specific plans for the use of funds have not been decided, but they are expected to be used to strengthen the competitiveness of Galleria Department Store, where reconstruction of the Seoul luxury hall is underway.
A Hanwha Galleria official said, "We selected H&Q Equity Partners as the preferred bidder in recognition of the performance of Five Guys Korea and its future growth potential, and for demonstrating strong commitment to the business."