Orchestra PE: "Successful Exit from KFC Korea... Sold to Carlyle"

Orchestra Private Equity (Orchestra) announced on the 17th that it has "successfully completed the divestment of its investment in KFC Korea, the operator of the global quick service restaurant brand KFC in Korea."

According to Orchestra, "Orchestra Private Equity VI, L.P. (OPE VI)" sold 100% of its shares in KFC Korea to The Carlyle Group, a global private equity fund (PEF) manager. This achievement comes roughly three years after the acquisition in April 2022. The sale was managed by Samil PricewaterhouseCoopers, while legal advisory was provided by Bae, Kim & Lee LLC.

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At the time of the acquisition, Orchestra implemented a multi-faceted value enhancement strategy to improve the fundamentals of KFC Korea, which was in urgent need of structural transformation. Through measures such as optimizing the store portfolio, restructuring the supply chain, driving digital transformation, and establishing a franchise business model, the company achieved both sales growth and improved profitability.

In fact, KFC Korea's sales grew at a compound annual growth rate (CAGR) of 23%, and earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 3.2 times. Average daily sales also increased by 55% compared to pre-acquisition levels, demonstrating the effectiveness of its operational efficiency strategy.

Jay Kim, Partner at Orchestra, stated, "Through rigorous execution and collaboration, we were able to maximize the brand's potential and fundamentally improve the business structure," adding, "KFC Korea is now fully prepared to enter a new phase of growth, backed by significantly enhanced competitiveness."

Meanwhile, Orchestra is a cross-border private equity fund manager specializing in the mid-cap and small-cap markets in Korea and Japan, focusing on transforming its portfolio companies into market leaders through active management participation.

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