[Exclusive] ‘Jidopyo Seonggyeongkim’ Seonggyeong Food Plans Management Rights Sale

Apalma Capital Pursuing 100% Stake Sale of Seonggyeong Food
Acquired in 2005 for 100 Billion Won... Business Expansion Through Bolt-On Strategy

Seonggyeong Food, a leading domestic seasoned laver manufacturer, has been put up for sale.

According to the investment banking (IB) industry on the 27th, private equity fund (PEF) Apalma Capital is pushing for the sale of Seonggyeong Food's management rights. The sale target is 100% of the shares. Separate sales of its subsidiary, Gaemi Food, are also possible.

Seonggyeong Food's core brand is 'Jidopyo Seonggyeong Gim.' It is famous for its packaging featuring a map of the Republic of Korea. Seonggyeong Food mainly purchases unseasoned dried laver and then reprocesses it for sale. It produces and sells about 200 types of laver, the largest variety among domestic laver companies. The production plants are located in Wadong, Daedeok-gu, Daejeon Metropolitan City, where the headquarters is, and in Ojeong-dong, Daedeok-gu. Most of the laver is produced at the headquarters factory, while laver flakes and gimbap laver have been produced at the Ojeong-dong factory.

Seonggyeong Food was established in 1994 under the banner of becoming the 'capital of laver' by combining 'Seong (成)' meaning 'to achieve' and 'Gyeong (京)' meaning 'Seoul.' It was incorporated in 2015. In 2017, the PE management company Apalma Capital acquired it for 100 billion KRW. Since then, it has been transforming by continuously launching new products and new brands to find new growth engines.

In 2018, it introduced sub-brands 'Anjugongbang' and 'Gansikgongbang.' Targeting single-person households and so-called solo drinkers and vegans, it launched three laver brands that can be eaten like beer snacks or snacks: 'Monster Gim,' 'Hello Carbot Gim,' and 'Kim Junho Tiger Gim.' It is also actively pursuing exports by pioneering overseas markets such as the United States, Canada, China, Singapore, and New Zealand. It has expanded its business by acquiring companies in the same industry and aiming for synergy effects through a bolt-on strategy, including acquiring the snack manufacturer Gaemi Food.

Recently, private equity funds have poured heavily into the laver market, which has established itself as a 'K-food' sought after worldwide. More than 200 billion KRW of private equity funds have been injected into famous domestic laver brands such as 'Seonggyeong Gim,' 'Manjeon Gim (Kamur PE),' and 'Haenong Gim (Gravity PE).' The increase in demand for Korean laver overseas has led to investments and acquisitions of laver manufacturers by private equity funds. Korean-style seasoned laver, flavored with salt and other ingredients, has gained popularity as a snack for drinking in the United States, and consumption of Korean laver has increased in Asian markets as interest in K-food has grown.