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The Korea Herald
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THE INVESTOR
March 19, 2024

Deals

Mexican food chain On The Border looking for new owner

  • PUBLISHED :April 23, 2018 - 12:04
  • UPDATED :April 23, 2018 - 12:04
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[THE INVESTOR] Mexican casual restaurant chain On The Border is looking for a new owner, according to industry sources on April 23.

Current operator JRW -- run by an LG Group owner family relative -- has already selected Samjong KPMG as deal manager and plans to pick the preferred bidder by the end of next month. A number of private equity firms and restaurant chain operators have reportedly shown interest in the deal.




Korea-based JRW operates nine On The Border outlets, and is likely to sell them for around 15 billion won (US$14.04 million) to 20 billion won since the price is usually around 10 times the EBITDA, which stood at approximately 2 billion won in 2017.

JRW Chairman Lee Ji-young is son of former LG Group adviser Lee Jae-yeon, whose wife is one of LG Group founder Koo In-hoe’s daughters. He is also the brother of late Daelim Chairman Lee Jae-jun.

Lee started On The Border in 2006 by signing a master franchise contract with US firm Brinker International. Sales of On The Border increased by 30 percent last year to 26.1 billion from 20 billion won in 2015.

Before heading JRW, Lee introduced the US family restaurant brand TGIF in Korea, along with his brother Sun-yong, former head of Asian Star. The brothers turned it into a successful brand before selling it off to Lotte in 2002. Under their leadership, TGIF became the No. 1 brand in the industry, posting year sales of 32.2 billion in the first half of 2002.

JRW, meanwhile, declined to confirm information about the deal concerning On The Border.

By Song Seung-hyun (ssh@heraldcorp.com)

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