Minor Food Group, a regional food service company based in Thailand, and Serruya Private Equity have agreed to acquire global Korean fried chicken franchise Bonchon International for an undisclosed sum.
According to an announcement, Minor and Serruya will acquire Bonchon, which has 500 global units, from South Korean private equity firm VIG Partners and Mr Seo & Family.
VIG Partners acquired a 55% controlling stake in Bonchon International for about 60 billion won (about $43 million) in December 2018. The sale marks its exit from the company after nearly eight years.
Upon completion, Minor Food, a subsidiary of Thailand-listed Minor International, and Serruya Private Equity will own the Bonchon brand and operations across complementary territories.
Minor Food will own the business globally, excluding the Americas, while Serruya Private Equity will own the business throughout the Americas, per the announcement.
BDA Partners acted as financial adviser to VIG Partners and Bonchon, while Kim & Chang served as legal counsel.
Bonchon has grown from a single restaurant in Busan, South Korea, in 2002 into a global franchise platform with more than 500 restaurants.
The company entered the US market in 2006 and now operates across the United States, Thailand, the Philippines, Vietnam, Myanmar, Taiwan, Laos, Cambodia, and Malaysia.
The brand is known for its signature double-fried Korean fried chicken and proprietary sauces.
Bonchon operates a scalable franchise model that generates recurring income through royalty fees and proprietary sauce sales. It also owns and operates its own sauce production facility.
One of the buyers, Minor Food, operates more than 2,800 outlets across 24 countries under brands including The Pizza Company, Swensen’s, Dairy Queen, Burger King, Sizzler, Benihana, and The Coffee Club. Its parent company, Minor International, is traded on the Stock Exchange of Thailand.
Serruya Private Equity, on the other hand, is the Serruya family’s private investment platform, focused on consumer-facing businesses. Its current and previous portfolio brands include Yogen Früz, Pinkberry, Swensen’s Ice Cream, Cold Stone Creamery, and Marble Slab Creamery.
The Bonchon acquisition comes amid increased dealmaking involving Asian food and beverage brands. Bain Capital recently agreed to acquire Gong cha Global, one of the world’s fastest-growing tea brands, from TA Associates and the company’s other shareholders.
