South Korea’s fried chicken franchise name BHC Co. has become the preferred bidder to take over Outback Steakhouse Korea by offering up to 280 billion won ($244 million) to add western food to its Korean cuisine lineup.
According to multiple sources from the investment bank industry on Tuesday, SkyLake Equity Partners under the advice of Credit Suisse chose BHC as the primary candidate to buy over the American casual dining chain in Korea.
BHC is said to have scored highest in pricing and aptness to oversee the dining chain, according to a source in the investment bank.
With Outback Steakhouse under its arm, BHC could achieve 1 trillion won sales milestone earlier than expected with portfolio complete from chicken takeout to Korean and western dining choices.
BHC has been rapidly moving beyond fried chicken. In 2014, BHC bought beef dining brand Changgo 43 and in 2015 import beef barbecue brand Bullso. In the following year, it acquired Keunmom Halmae Sundaeguk that sells stuffed sausage stew and beef barbecue house Gram Gram.
Its holding parent Global Restaurant Group has been bulking up even under Covid-19 environment.
Last year, Global Restaurant Group raised 116.2 billion won in operating income on sales of 477.6 billion won, up 15 percent from 91.7 billion won and 404.7 billion won, respectively, in 2019.
Outback Steakhouse Korea with sales of 300 billion won can help it fast achieve 1 trillion won revenue milestone.
SkyLake that bought Outback Steakhouse for 57 billion won in 2016 has scaled up the company by five times over five years. It is said to be asking for 270 billion won-280 billion won.
BHC is expected to sign an official agreement with SkyLake later this month.
By Jin Young-tae, Kim Hyo-hye, and Lee Eun-joo
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]