South Korea's Leading Dessert Brand 'Sulbing' to Experience Further Growth with Acquisition by UCK Partners

South Korean private equity fund UCK Partners has acquired the management rights of the specialized dessert café brand 'Sulbing', known for its shaved ice desserts. This acquisition is expected to create new growth opportunities for Sulbing, allowing it to further establish its presence in the dessert market.

 

Given UCK Partners' previous success in generating over fivefold returns through the acquisition of Gong Cha, this acquisition of Sulbing is also anticipated to yield successful investment returns.

 

UCK Partners is reported to have acquired the ownership rights of Sulbing through a Stock Purchase Agreement (SPA) with the major shareholder. Negotiations with the major shareholder for the acquisition of Sulbing have reportedly been ongoing, and the brand's value is estimated to be around 150 billion KRW (approximately $128 million USD). UCK Partners plans to acquire a stake representing about 75% of this value for approximately 130 billion KRW (approximately $111 million USD). To achieve this, they are expected to utilize their third blind fund and additional funds.

 

Since its establishment in 2013, Sulbing has emerged as a leading brand in South Korea's shaved ice dessert market. It has gained immense popularity by reinterpreting traditional Korean shaved ice in a modern way and offering consumers unique flavors and experiences through various innovations. Its performance over the past few years has been outstanding, achieving impressive growth in the shaved ice market. In 2021, it recorded sales of 25.5 billion KRW (approximately $22 million USD) and an operating profit of 9.9 billion KRW (approximately $8.4 million USD).

 

UCK Partners, the acquiring entity, has already established expertise in various food and beverage (F&B) sectors. They have previously acquired other F&B brands such as bubble tea brand Gong Cha and coffee and specialty brand 'Terra Rosa', accumulating diverse experiences in the F&B market. Notably, their acquisition of Gong Cha resulted in the integration of three corporations in South Korea, Taiwan, and Japan, building a global management structure and achieving success in 17 countries.

 

While Sulbing is already operating as a master franchise in around 10 countries including Japan and Australia, the acquisition by UCK Partners is expected to reinforce its overseas expansion, focusing on countries with greater growth potential. Through this collaboration, Sulbing is anticipated to showcase its charm on a broader international stage.

 

Given UCK Partners' previous success in generating over fivefold returns through the acquisition of Gong Cha, this acquisition of Sulbing is also anticipated to yield successful investment returns. Moreover, Sulbing is expected to achieve even greater scale and success with UCK Partners, further elevating its status as South Korea's representative dessert brand.