US private equity major Carlyle Group has agreed to acquire fast-food chain operator KFC Korea for an undisclosed amount, according to an announcement.
Carlyle said it has signed a definitive agreement, through an affiliated entity of its Carlyle Asia Partners fund, to acquire 100% of KFC Korea, which runs the KFC brand in South Korea under a master franchise agreement with Yum! Brands.
The deal will give Carlyle full control of the brand’s South Korean business, as global buyout funds step up bets on consumer brands with room to expand store networks, per the announcement.
KFC Korea opened its first store in Seoul in 1984 and now operates more than 200 outlets nationwide, Carlyle said. The transaction will deepen Carlyle’s relationship with Yum! Brands.
Carlyle already owns KFC’s Japan business and said it plans to work with KFC Korea’s management team to accelerate new store openings, step up marketing, and broaden menu offerings in response to shifting consumer preferences.
“With its strong heritage and position in the market, we see significant opportunities for KFC Korea to expand its presence and capitalise on the growing demand for quick-service dining with Korean consumers,” said John Kim, partner and head of Carlyle Korea.
Carlyle has extensive investment experience in the restaurant, food, and consumer sectors, including quick-service restaurant franchises, both in Asia and globally.
The firm currently owns A Twosome Place, a leading premium dessert café chain with over 1,700 stores in South Korea; and KFC in Japan. Previous portfolio companies in the sector have included McDonald’s China and Japanese restaurant chain operator Chimney, among others.
Tony Shin, CEO of KFC Korea, said the company sees the tie-up as a key milestone and expects Carlyle’s experience in quick-service restaurants and food and beverage to support its growth plans and product innovation.
“Together, we aim to further elevate the exceptional KFC experience that Korean customers have come to know and love,” Shin added.
In September, Carlyle said it has raised $20 billion for its global Secondaries strategy, anchored by the final close of AlpInvest Secondaries Fund VIII, the flagship fund within the AlpInvest Secondaries Program VIII, which reached its $15 billion hard cap.
