PE-backed Gong Cha Korea to acquire global parent

The company has signed a memorandum of understanding with parent firm Royal Tea Taiwan (RTT) to raise its holding in the company to 70% by January 2017, a Unison executive told Pulse News; it already holds a 35% stake. The overall value of the 70% stake is about KRW49 billion ($43 million).

Currently Gong Cha has 370 locations in Korea and nearly 1,400 worldwide; the company is present in 18 countries, including China, Singapore, Canada, the US and Australia. Gong Cha Korea's plans for the global brand include expansion into the Middle East and Europe, and to emphasize the chain's Korea connections rather than its Taiwanese origins in an attempt to take advantage of the popularity of Korean culture overseas. This is the latest international food and beverage brand to be bought by its Korean subsidiary; previous examples include Japanese pizza chain Mr. Pizza in 2010 and US beverage maker Smoothie King in 2012.

Launched in 2012 by Korean entrepreneur Yeo-Jin Kim and her husband, Gong Cha Korea quickly grew to 255 locations before Unison bought a 70% stake in 2014. Since its purchase, Unison has helped the company acquire the master franchise rights for Japan and supported its expansion there through its financial resources and its professional network.

Unison's previous food and beverage investments include Japanese sushi chain Akindo Sushiro, acquired in 2007 and exited to Permira in 2012, and wine retailer Enoteca, bought in 2011 and sold to brewing giant Asahi Group last year.

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• Topics
• North Asia
• Consumer
• Buyouts
• South Korea
• Unison Capital
• M&A