Carlyle acquires Korean cafe operator, Anchor Equity exits
The Carlyle Group has acquired A Twosome Place, a Korea-based café operator with more than 1,400 stores nationwide, from Anchor Equity Partners.
The size of the transaction was not disclosed, but The Korea Herald reported that Carlyle had secured a 100% interest at a valuation of KRW700-800 billion ($589-674 million).
Anchor carved out the business from CJ Foodville, a subsidiary of CJ Corporation, in 2019. It paid KRW202.5 billion for a 45% stake and management control, according to AVCJ Research. CJ Foodville retained 15%. Canada Pension Plan Investment Board (CPPIB) participated as a co-investor.
Established in 2002, A Twosome Place is positioned as a premium dessert café, offering a variety of cake and dessert choices. Carlyle said in a statement that it would leverage its sector expertise, global network, and resources to strengthen the company’s brand, optimize its store footprint, and enhance its product offerings and marketing capabilities.
“A Twosome Place has built a strong brand and positioning as a leader in South Korea’s premium café sector. We look forward to working with the CEO Young-Sang Yi and his experienced management team to further build upon the strong franchise network and capture the significant white space in the Korean market,” said John Kim, a managing director at the private equity firm.
Carlyle is making the investment through its fifth Asia buyout fund, which closed in 2018 on $6.55 billion. Other recent activity in Korea includes a $200 million commitment to Kakao Mobility and a KRW240 billion investment in KB Financial Group. It also established a strategic partnership with Korean Re to explore co-insurance opportunities.
Korea’s café and coffee shop space has seen other private equity investments. IMM Private Equity exited Hollys Coffee to local digital payments services provider KG Inicis for KRW145 billion in late 2020 following a seven-year holding period.
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