Private equity firm Unison Capital profited a whopping 279 billion won ($230.53 million) from selling tea franchise Gong Cha Korea, in which it had invested about 71 billion won, according to industry sources on Aug. 30.
The PEF recently announced it has agreed with private equity firm TA Associates to sell its entire 76.9 percent stake in Gong Cha Korea and the remaining 23.1 percent owned by Brandhaus Capital Partners CEO Martin Berry for 350 billion won.
In 2014, Unison Capital acquired a 70 percent stake in Gong Cha Korea for 36 billion won. Two years later, Unison Capital acquired a 35 percent stake in Royal Tea Taiwan, the headquarters of the Gong Cha franchise, by buying newly issued shares at 15 billion won.
In 2017, Unison Capital increased its stake in Royal Tea Taiwan to 69 percent and started managing the whole global business of Gong Cha.
Industry sources say that Unison’s choice to buy Royal Tea Taiwan made it possible to boost Gong Cha’s global business in 19 countries.
Gong Cha Korea’s EBITDA came to 32 billion won in 2018, up from the previous year’s 13.4 billion won. This was not only due to Gong Cha’s growth in Korea but also due to growth in 19 different countries.
By Song Seung-hyun (email@example.com)