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Carlyle to acquire full stake in KFC Korea

Daniel Kim Views  

Signage for a KFC restaurant is shown in Ontario on Nov. 6. (Getty Images)Global private equity firm Carlyle has agreed to acquire full ownership of KFC Korea, deepening its footprint in South Korea’s food and beverage sector and seeking synergies between the fast-food chain’s Korean and Japanese operations.

The Nasdaq-listed firm said Monday it signed a definitive agreement to acquire 100 percent of KFC Korea through a subsidiary of its Asia-focused Carlyle Asia Partners. The transaction is expected to close in the first quarter of 2026.

The purchase price was not disclosed, though industry estimates value the deal at around 200 billion won ($135 million).

KFC Korea is currently owned by Seoul-based private equity firm Orchestra PE, which bought the franchise from KG Group in early 2023 for about 70 billion won. The sale marks a successful exit for Orchestra PE, delivering a significant gain in just over two years.

Since opening its first store in Seoul in 1984, KFC Korea has expanded steadily and now operates about 200 locations nationwide under a master franchise agreement with Yum Brands, one of the world’s largest restaurant franchise groups.

Carlyle said it plans to work with KFC Korea’s management to accelerate store openings, strengthen marketing and pursue menu innovation tailored to domestic consumers, drawing on its experience in Asia’s food and beverage and quick-service restaurant sectors. The firm added that the acquisition, together with its ownership of KFC Holdings Japan, is expected to deepen its strategic partnership with Yum Brands.

The deal further expands Carlyle’s restaurant franchise portfolio in Asia, which also includes South Korean cafe chain A Twosome Place, acquired in 2021 for about 1 trillion won.

Carlyle’s interest in KFC Korea is underpinned by the stable profitability achieved under Orchestra PE, which drove a rapid turnaround through structural improvements and cost-efficiency measures. Sales rose 17 percent on-year in 2024 and continued to strengthen this year, with first-half revenue reaching a record 167.8 billion won. Earnings before interest, taxes, depreciation and amortization totaled 46 billion won last year, while operating profit jumped about 40 percent from a year earlier in the first half.

“With its strong heritage and position in the market, we see significant opportunities for KFC Korea to expand its presence and capitalize on the growing demand for quick-service dining among Korean consumers,” said John Kim, partner and head of Carlyle Korea.

Daniel Kim
content@viewusglobal.com

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