Korean restaurant chain Mad for Garlic up for sale

Mad for Garlic‘s Garlic Snowing Pizza [Photo provided by MFG Korea]

Global private equity fund Affirma Capital has kicked off the process to sell its stake in MFG Korea Co., operator of a garlic-themed restaurant chain Mad for Garlic, nearly 9 years after an acquisition in 2014.

According to multiple sources from the investment bank industry on Wednesday, Affirma Capital has recently picked Samjong KPMG as the sales advisor. The accounting firm is sending out teaser letters to potential bidders.

Affirma Capital acquired MFG Korea in August 2014. The firm hired Samsung Securities Co. in 2018 to sell its stake in the restaurant chain operator but suspended the process for business realignment.

Affirma Capital focused on digitalization in operations. It also bought another restaurant franchise TGI Fridays in 2021.

MFG Korea raised 7.4 billion won ($5.6 million) in operating profit last year, up by more than 30 percent from a year ago, on sales of 124.6 billion won, up 37 percent. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 16.3 billion won last year.

Mad for Garlic is an Italian food brand launched by Sun at Food in 2001. MFG Korea was set up in 2014 after a spin-off of the local Mad for Garlic business.

Affirma Capital is known to have bought 71 percent stake in MFG Korea for 50 billion won 9 years ago. Of the entire stake, Affirma Capital currently owns 89.3 percent and Sun at Food 10.7 percent. The sales price of Affirma Capital’s stake in MFG Korea is projected to reach above 100 billion won.