SEOUL — Samchully Group, South Korea's leading city gas provider, is set to acquire Sunggyung Food, the manufacturer of the well-known "Jidopyo Sunggyung Laver" (Sunggyung Gim). This strategic move aims to strengthen the group's food and beverage (F&B) portfolio and diversify its revenue streams, which have traditionally been heavily dependent on the energy sector.
According to investment banking (IB) industry sources on December 26, the private equity firm Affirma Capital signed a Share Purchase Agreement (SPA) with Samchully for the sale of a 100% stake in Sunggyung Food. The total acquisition price is reported to be 120 billion won (approximately $92 million).
From a Small Market Stall to a Global Brand
Founded in 1981 as a small laver shop in a traditional market in Daejeon, Sunggyung Food has grown into one of South Korea's top three seaweed manufacturers. Its flagship brand, Sunggyung Gim, is widely exported to major markets including the United States and Japan. Due to its high export value and global popularity, Korean seaweed has earned the nickname "the black semiconductor." Currently, international sales account for approximately 40% of Sunggyung Food’s total revenue.
The company’s financial performance has shown robust growth. In the previous fiscal year, Sunggyung Food recorded 123.6 billion won in sales, a 27.2% increase from the year before. Operating profit stood at 8.3 billion won, while net profit surged more than threefold to 21.3 billion won, up from 6.6 billion won in the previous year.
A Strategic Shift and Succession Move
The acquisition is seen as a pivotal step in Samchully’s long-standing effort to diversify its business. Since around 2010, the group has expanded into various industries, including hotels, imported car dealerships, and F&B services.
Industry observers also link this acquisition to the group’s third-generation management succession. The deal was reportedly led by Lee Eun-sun, Vice President of Samchully and granddaughter of the group’s co-founder, Honorary Chairman Lee Jang-kyun. This move is expected to grant her a significant platform to demonstrate her leadership in the group’s non-energy sectors.
Affirma Capital’s Successful Exit
For the seller, Affirma Capital, the deal marks a successful exit after nearly eight years. Since acquiring Sunggyung Food in late 2017, the private equity firm has focused on enhancing the company’s corporate value and expanding its global footprint. Upon completion of the sale, Affirma is expected to recover approximately twice its initial investment principal.
The deal is anticipated to provide Samchully with a stable cash cow and a proven global distribution network, further solidifying its presence in the competitive food market.
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