Goldman backs South Korean bakery ingredients maker

The company, Korea’s largest maker of specialty bakery ingredients, will use the capital to upgrade its manufacturing and distribution facilities. It also plans to improve ordering and delivery experience by upgrading its customer service technology. Goldman expects to leverage its experience and network in the global food industry to enhance the company’s operations.

Founded in 1987, Sun-in imports and produces more than 1,000 ingredients for baked goods, such as flour, sugar, dairy products and non-dairy substitutes, toppings and stabilizers that it supplies to 2,000 Korean clients. Its customers include cafes, restaurants, bakeries, confectionaries, fast food franchises, and wholesalers.

Demand for baked goods has grown among Koreans in recent years, with the confectionery and non-alcoholic beverages market valued at KRW8.9 trillion in 2014 according to the country’s Agriculture Ministry, 13.9% higher than the previous year. The combined markets accounted for nearly 11% of Korea’s entire food service industry in 2014.

“Sun-in is a local industry champion with significant further growth potential given the continuing diversification of diets and palates in Korea,” said Stephanie Hui, co-head of private equity for Goldman Sachs in Asia, in a statement. “We look forward to bringing our strong global network and decades of experience in building global market leaders to the company.”

Goldman has invested over $4 billion in Korea since 1999. The GP has made two significant exits this year, selling its stake in Daesung Industrial Gases to MBK Partners in February for a reported KRW2 trillion including debt, and exiting a majority stake in cosmetics supplier Carver Korea, along with Bain Capital Private Equity, to Unilever last month in a deal worth EUR2.27 billion ($2.7 billion).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Industrials
• Expansion
• South Korea
• Goldman Sachs
• manufacturing
• Growth capital