[Alpha Biz= Ellie Kim] Private equity firm KL & Partners has formally begun the sale process for Mom’s Touch after appointing key advisors, signaling a renewed push to find a buyer.

According to investment banking sources on May 20, KL & Partners has selected Yulchon LLC rival Hwawoo Law Firm as legal advisor and Samil KPMG as accounting advisor. Samil KPMG previously advised on KL & Partners’ acquisition of Mom’s Touch in 2019 and its earlier sale attempt in 2022.

The firm has already appointed Citi Global Markets as the lead sale advisor, with additional advisory appointments still under consideration.

Market interest is reportedly strong, with around 10 domestic and global accounting firms and investment banks competing during the advisor selection process. Potential buyers include both strategic investors (SI) and financial investors (FI), particularly global private equity funds with significant dry powder.

Valuation expectations have risen sharply. Mom’s Touch generated KRW 479 billion in revenue and KRW 89.7 billion in operating profit last year, with EBITDA reaching approximately KRW 103.1 billion. Applying recent industry multiples—often ranging from 16x to 20x EBITDA in Asian F&B deals—suggests a potential valuation in the mid-KRW 1 trillion range, nearly double the KRW 600–700 billion range discussed during the 2022 sale attempt.

Recent comparable transactions include Goldman Sachs’ acquisition of Burger King Japan at around 20x EBITDA and Carlyle Group’s purchase of KFC Holdings Japan at roughly 16–17x.

Following the failed 2022 sale, KL & Partners focused on international expansion, entering markets such as Japan, Mongolia, Thailand, and Uzbekistan through master franchise agreements. In Japan, the brand has already opened multiple directly operated stores in key districts like Shibuya and Harajuku, with a goal of reaching 100 franchise agreements this year.

A successful exit would mark a landmark deal for KL & Partners, which is also in the process of raising its first independent blind fund exceeding KRW 350 billion. The outcome of the Mom’s Touch sale is expected to significantly influence its fundraising efforts.

 

 

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