CJ Foodville Secures 70 Billion KRW Investment... "Global Expansion Up"

CJ Foodville announced on the 14th that it has successfully completed an external investment attraction worth 70 billion KRW.

[Photo by CJ Foodville]

Since selecting Argus Private Equity (hereinafter ‘Argus PE’) as the preferred negotiation partner in August, CJ Foodville has completed the investment payment in about three months, marking the deal closing. CJ Foodville raised a total of 70 billion KRW through a third-party allotment paid-in capital increase by issuing approximately 1.29 million new shares to Argus PE. Upon completion of the investment attraction, Argus PE will hold a 12.3% stake as the second-largest shareholder of CJ Foodville.

During this investment attraction process, CJ Foodville was reportedly valued at 500 billion KRW in equity value. Despite the currently frozen capital market atmosphere, the successful completion of the investment attraction is attributed to the rapid global expansion of Tous Les Jours, a bakery franchise operated by CJ Foodville, and the improved performance of dining brands such as VIPS, which received favorable reviews for business growth and profitability.

Since achieving profitability in the North American market in 2018, CJ Foodville has recorded profits for five consecutive years until last year. Last year’s sales reached 76.4 billion KRW, an increase of more than 50% compared to 2021, and in the first half of this year, both sales and operating profit grew by 50% and 250% respectively compared to the same period last year, proving a clear growth trend.

Along with the strong performance of overseas business, which accounted for half of last year’s operating profit, the domestic dining sector including VIPS, The Place, and Jeil Jemyunso has also improved performance by reorganizing stores with profitability after the pandemic and adding premium elements, achieving profitability since last year.

CJ Foodville plans to invest the funds raised this time as future growth engines in the global market, including strengthening Tous Les Jours’ North American business. In September, it announced the establishment of a new Tous Les Jours factory in Gainesville, Hall County, Georgia, USA, with an annual production capacity of over 100 million units on approximately 90,000㎡, scheduled for completion in 2025. The goal is to operate more than 1,000 stores in the North American region by 2030.

A CJ Foodville official said, “We will maximize cash profit generation by activating operations through overseas business expansion and strengthen financial soundness. Based on the funds secured through this investment attraction, we will accelerate global business expansion and devote ourselves to making Tous Les Jours a world-class bakery brand.”