Affinity to trade Burger King business in Japan & South Korea for $1Bn
Category: #business  By Mateen Dalal  Date: 2022-01-19
  • share
  • Twitter
  • Facebook
  • LinkedIn

Affinity to trade Burger King business in Japan & South Korea for $1Bn

Affinity Equity Partners, one of the largest dedicated Asian private equity firms, is reportedly planning to sell off its Burger King fast-food businesses in Japan and South Korea, in a deal that can offer more than $1 billion, said a credible source with knowledge of the matter.

The Hong Kong-based firm has recruited Goldman Sachs to undertake the sale, which targets private equity investors and strategic buyers.

Although, the bank refused to reveal any details on the same.

In 2016, Affinity secured complete control of Burger King South Korea for around $170 million and acquired the American fast-food brand's Japan franchise a year later.

The South Korean business recorded a revenue of $572 million in 2021, with accustomed earnings before interest, depreciation, taxes, and amortization (EBITDA) at $67 million.

It has been reported +that the firm’s adjusted EBITDA in 2022 would reach $83 million.

Moreover, Japan's Burger King adjusted EBITDA was $6 million in 2021.

As per the data published by Refinitiv Eikon, Global fast-food chains like McDonald's and Yum! Brands are currently trading at 20 to 30 times their EBITDA. The Indian branch of Burger King is trading at around 25 times its EBITDA.

Due to the pandemic, the businesses have started to rely more on deliveries in South Korea which has further propelled exponential growth for its food delivery apps.

Recently, Burger King Korea said that the number of monthly active users on its app surpassed 1.4 million in December, the highest since its launch in May 2016.

Amid Affinity's acquisition, Burger King is set to expand in South Korea and Japan. The food-chain runs around 440 outlets in South Korea, more than its competitor McDonald's.

Furthermore, the Japan franchise mentioned that it is working on opening three new outlets in January, which will bring the total number of outlets to 149.

Source Credit - https://money.usnews.com/investing/news/articles/2022-01-18/hong-kong-fund-to-sell-japan-south-korea-burger-king-business-in-deal-over-1bln-source

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Ather Energy raises $250 million to stay ahead in competition
Ather Energy raises $250 million to stay ahead in competition
By Mateen Dalal

Electric scooter producer Ather Energy has reportedly secured $250 million in a new funding round. As per reports, the investment round is in its early stages. The company’s goal is to obtain $200 million to $250 million to compete in the EV...

Digital wellness startup Mojorcare bags USD 20 Mn in Series A funding
Digital wellness startup Mojorcare bags USD 20 Mn in Series A funding
By Mateen Dalal

Mojocare, a wellness and health startup has reportedly raised USD 20.6 million in a Series A round of funding which was led by B Capital Group and saw participation from existing investors including Sequoia India’s Surge, Better Capital, and Ch...

Exponent Energy bags USD 13 million in Lightspeed-led Series A funding
Exponent Energy bags USD 13 million in Lightspeed-led Series A funding
By Mateen Dalal

Bangalore-based Exponent Energy has reportedly secured USD 13 million in a Series A funding round which was spearheaded by Lightspeed Venture Partners. The round also saw participation from existing investors such as 3one4 Capital, YourNest VC, and A...