이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

IMM PE embarks on sale of coffee chain Hollys F&B

Collected: 2016.05.28

Distributed: 2016.05.30

Source: Go Direct

South Korea’s IMM Private Equity has decided to sell its majority stake in Hollys Food and Beverage Co. (F&B), an operator of a Korean coffee chain Hollys Coffee, three years after it took over the company.

IMM PE will sell its 91.82 percent stake in Hollys F&B including management rights. It is expected to gain about 100 billion won ($84 million) from the potential sale, and is said to be looking for a new owner from overseas. It chose Deutsche Bank to lead the sale.

After IMM PE acquired Hollys F&B in 2013 for 45 billion won, it spent additional 30 billion won immediately in the year and 7 billion won in 2014 to hike its stake ownership to 91.82 percent.

Following the takeover, sales of Hollys F&B soared 58 percent from 68.6 billion won in the end of 2013 to 108.6 billion won in 2015. Over the cited period, the company added 170 new stores across the nation, increasing the total number of stores to 554, and its earnings before interest, taxes, depreciation and amortization (EBITDA) surged 43 percent from 10 billion won to 14.3 billion won.

The possible sale of Hollys F&B is expected to help reinforce IMM PE’s position in the local PE market. The company has made its fame in generating huge profits through stake investments, but so far had little experience in managing a company after buyouts. It is now trying to obtain management rights of Tailim Packaging Co. and Taihan Electric Wire Co.

By Kang Doo-soon and Han Woo-ram

Read in Korean

List

Previous: Korean oil refiners worry worsening profit from higher crude prices

Next: S. Korean dual camera module suppliers expected to benefit from Sony’s exit