이 기사는 2021년 06월 18일 06시40분 thebell에 표출된 기사입니다

Private equity firm VIG Partners is working on a 60 billion won ($53 million) recapitalization of Korean fried chicken franchise Bonchon.

VIG Partners is conducting marketing campaigns to investors to raise 60 billion won, industry sources said Wednesday.

The buyout fund acquired a 55% stake in Bonchon from its founder and chairman, Seo Jin-duk, in 2018. Bonchon specializes in Korean-style fried chicken and runs stores in the United States and Asian countries, including Thailand and the Philippines. It has no store in Korea.

VIG Partners used its third blind-pool fund that closed at 700 billion won to take over Bonchon, with no borrowings. The latest recapitalization marks the first acquisition financing for the chicken franchise.

VIG Partners decided to recapitalize Bonchon as it has shown stable growth over the past three years. The firm has believed it is the right timing to distribute interim returns to existing limited partners.

Bonchon’s revenue increased from 21.9 billion won in 2018 to 29.5 billion won in 2019 and 30.6 billion won in 2020. Its operating profit increased from 9.2 billion won in 2018 to 12 billion won in 2019 and 13.4 billion won in 2020.

The number of stores in the U.S. and Southeast Asia has grown from 350 in 2018 to more than 400 presently. The company aims to increase its total franchise numbers to 1,000 worldwide by 2026. (Reporting by Hee-yeon Han)