BHC Group to buy Outback Steakhouse Korea Deal expected to enable restaurant chain operator to diversify food business portfolio

Translated by Ryu Ho-joung 공개 2021-07-22 07:46:41

이 기사는 2021년 07월 22일 07:44 더벨 유료페이지에 표출된 기사입니다.

South Korea’s restaurant chain operator BHC Group is set to acquire Outback Steakhouse Korea as it seeks to diversify its food business portfolio beyond the mainstay fried chicken.

SkyLake Equity Partners has named BHC Group as the preferred buyer for its 100% stake in Outback Steakhouse Korea on Tuesday, industry sources said. The two sides are expected to sign a stock purchase agreement in the coming weeks.

The race to acquire the steakhouse chain was a two-way battle between BHC Group and Yuanta Investment. The final round of bidding was held on June 25, and BHC Group reportedly offered a price of the mid to upper 200 billion won ($218 million to $260 million).

BHC Group is said to have showed a strong desire to buy the steakhouse chain throughout the bidding process. Significant synergy potential between BHC and Outback Steakhouse Korea was also a reason that SkyLake opted to choose BHC Group.

BHC Group is owned by Global Restaurant Group whose key investors include private equity firm MBK Partners. Its mainstay chain is fried chicken brand BHC. Other restaurant chains operated by the company include premium barbeque restaurant Changgo43, casual beef house Gram Gram, blood sausage soup chain Bo Kang Food and several other Korean food restaurants.

BHC Group has been stepping up efforts to diversify its food portfolio beyond fried chicken. The acquisition of Outback Steakhouse Korea clearly was a very tempting opportunity for BHC Group to further expand its line-up of restaurants.

The steakhouse chain has a global brand presence, which also likely increased its attractiveness to BHC Group. Australian-themed Outback Steakhouse globally has more than 1,000 locations across 20 countries. BHC Group can raise its enterprise value and strengthen its presence as a leading restaurant company by adding this global brand to its portfolio.

Outback Steakhouse also significantly improved management efficiency for the last five years under SkyLake’s ownership, which is a benefit for the new owner.

Outback Steakhouse Korea has more than 80 locations across the country, all of which are directly operated by the company. This is also considered a positive for BHC Group as most of its restaurants are currently operated by franchisees.

BHC Group chairman Park Hyeon-jong is a well-known entrepreneur in the food and beverage industry. He told thebell last month that the acquisition of Outback Steakhouse Korea could create an “upside from its scale and synergy with our affiliated restaurants”. (Reporting by Hee-yeon Han)
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