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Photo: Mom's Touch |
[Alpha Biz= Paul Lee] SEOUL, South Korea — KL&Partners, a prominent South Korean private equity firm, is preparing to sell Mom’s Touch, the nation’s leading hamburger and chicken franchise. Following a period of significant operational improvement and global expansion, the firm is reportedly seeking a valuation of approximately 1 trillion to 1.3 trillion KRW ($720M – $940M).
Robust Financial Performance
According to Investment Banking (IB) sources on the 13th, KL&Partners plans to select a lead manager in the second quarter to initiate the sale. The move comes as Mom’s Touch recorded an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of approximately 102 billion KRW last year, a more than 20% increase from 84 billion KRW in 2024.
Given that F&B (Food and Beverage) franchises are typically valued at an EBITDA multiple of 10x to 13x, industry analysts believe the company could realistically fetch over 1 trillion KRW.
The Road to Divestiture
KL&Partners acquired a 56.8% stake in Mom’s Touch for 200 billion KRW in 2019. By 2022, the firm increased its stake to 95% and voluntarily delisted the company from the KOSDAQ to facilitate a more flexible sale process. While an earlier attempt to sell the brand in 2022 was thwarted by the COVID-19 pandemic’s impact on the F&B sector, the current recovery has paved the way for a successful exit.
Global Expansion as a Growth Engine
A key factor in the premium valuation is Mom's Touch's aggressive entry into international markets. The brand has rapidly expanded across Asia:
2022-2023: Entered Thailand and Mongolia.
2024-2025: Expanded into Japan, Laos, and Uzbekistan.
In Japan, the company established a Tokyo subsidiary and operates four direct-managed stores in high-traffic areas, including Shibuya, Harajuku, Shimokitazawa, and Akitsu. The Tokyo subsidiary alone reported revenues of 3.6 billion KRW last year, proving the brand's potential in the competitive Japanese market.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
