Sajo Group Acquires Foodist with 1 Trillion KRW Sales... Enters School Meal and Food Material Distribution Sector

Private Equity Firm VIG Partners Acquires Stake
Acquisition Price 250 Billion KRW... Vice Chairman Joo Ji-hong Leads Acquisition Battle
Group Targets 6 Trillion KRW Revenue This Year... Ambition for 10 Trillion KRW Within 5 Years

Sajo Group is entering the food service and food ingredient distribution industry by acquiring 'Foodist,' a food ingredient distribution and catering service company.

According to industry sources on the 24th, Sajo Group signed a contract to acquire all shares of Foodist held by the domestic private equity fund VIG Partners. The acquisition price is approximately 250 billion KRW. It is known that the acquisition cost will be borne by the food affiliates centered on Sajo CPK, a newly incorporated 100% subsidiary of Sajo Daelim.

Joo Ji-hong, Vice Chairman of Sajo Group Photo by Sajo Group

Foodist started its catering business in 1995 with Hanwha Yeouido Building and was spun off from Hanwha Hotels & Resorts in 2020. It merged the food ingredient distribution and group catering business acquired by VIG Partners and Winplus (Sikjajaewang Mart), which was acquired in 2018. In 2023, it recorded sales of 1.0291 trillion KRW, with an average annual sales growth rate of 15.4% over the past three years. Its main business areas are food ingredient distribution and group catering services.

In the food ingredient distribution sector, Foodist targets all businesses that require food ingredients and food products, including local dining, corporate dining, and catering operators. As of last year, this sector accounted for about 75% of total sales. The industry-leading private brand (PB) 'Sikjajaewang' is the core, and the company also operates its own online mall (e-Wang Mart) and offline stores (Sikjajaewang Mart). With nationwide logistics coverage, 'Good Morning Delivery' is available in the metropolitan area, and daily delivery is possible nationwide.

In the food service sector, Foodist provides all services related to outsourced catering, including food ingredient procurement, facility, safety and hygiene management, menu development, and operation. This accounts for about 25% of the company's total sales. The company is expanding its business by entering corporate, school, hospital, and military catering markets. Among these, the military catering market is estimated to be worth about 2 trillion KRW, and with the Ministry of National Defense's policy to improve military catering, the proportion of private outsourced catering is increasing, promising high growth.

Through this acquisition of Foodist, Sajo Group plans to establish a food value chain that covers everything from raw materials to manufacturing, sales, and distribution through 28 domestic factories in the food sector, as well as the entire primary industry including agriculture (the three major crops: wheat, soybeans, corn), fisheries (tuna, pollock, squid), and livestock (pigs, chickens, ducks). Additionally, it is expected to create various synergies with the existing food manufacturing business through Foodist’s six regional logistics centers nationwide, 13 wholesale marts called Sikjajaewang Mart, private brand products, and online food ingredient platforms.

The acquisition is expected to stabilize food ingredient supply and purchasing synergy through the primary industry, and further diversify the group’s overall product portfolio and brand strategy. Sajo’s manufacturing capabilities and research and development expertise, which have been built up in sauces, processed foods, and food materials, are also expected to shine even more with Foodist joining the group.

Earlier this year in January, Sajo Group expanded its size in the domestic food industry through mergers and acquisitions by acquiring Ingredient Korea (now Sajo CPK) and now Foodist. Vice Chairman Joo Ji-hong, who oversees the group’s food division, has been successfully leading consecutive M&As, drawing industry attention.

Vice Chairman Joo graduated from Yonsei University and the University of Illinois graduate school, worked at consulting firm BearingPoint, earned an MBA from the University of Michigan Ann Arbor, and then joined Sajo Group. He expanded his management scope by serving as Planning Director at Sajo Haepyo and Head of Management Support Headquarters. After becoming Head of the Food Division in 2015, he acquired Dong-Ahwon (now Sajo Dong-Ahwon), one of the top three domestic flour milling companies, in 2016 and achieved management normalization and structural improvement.

Vice Chairman Joo stated, "Through this acquisition, we will continuously strengthen group synergy and global competitiveness, achieve sales of 6 trillion KRW this year, and grow into a company with a scale of 10 trillion KRW within five years."