South Korea’s private equity fund Hahn & Co. plans to put Woongjin Foods Co. on the market, eying a deal worth 210 billion won ($196 million).

According to sources from the investment banking industry on Thursday, Hahn & Co. is looking for a sales adviser to officially start the sale process of Woongjin Foods next month after the food maker reports last year’s earnings.

Hahn & Co. acquired Woongjin Foods from Woongjin Holdings in 2013 at 95 billion won. The food company posted 1.1 billion won in operating loss in 2013 but returned to profit of 8.1 billion won in the following year. Its most famous product is Haneul Bori, a barley tea drink accounting for 80 percent of the local barley tea market. It recorded 14.2 billion won in operating profit on sales of 223.5 billion won in 2016.

Industry watchers estimate the sale would fetch at least 210 billion won. Potential candidates include LG Household & Health Care that has recently been bolstering its drink business and Donga Otsuka that could join the top three in the industry with Woongjin Foods under its arm.

Woongjin Foods has a sound business portfolio but is weak in retail, an official from the IB industry said, adding that a food company with a well-established logistics and retail network would be the best buyer for Woongjin to create a synergy.

By Park Eun-jin and Choi Mira

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