JKL Partners to acquire London Bagel Museum in W200b deal: reports

(London Bagel Museum's Instagram)

JKL Partners, a Seoul-based private equity firm, is set to buy London Bagel Museum, a viral bagel phenomenon with a cult following, in a deal valued at around 200 billion won ($147 million).

According to news reports on Friday, LBM — the operator of London Bagel Museum as well as smaller chains like Artist Bakery and Cafe High Waist — is in the final stages of signing a share purchase agreement with JKL Partners, following months of a buyer search, with Bank of America as the adviser.

The deal is likely to include provisions for current management to retain a minority stake and continue overseeing the brand, the reports said, with final approval pending from the company’s majority shareholder.

While Aeneas Private Equity initially led the bidding with a 300 billion won offer, its failure to secure financing paved the way for JKL, backed by a forthcoming 800 billion won blind fund, to emerge as the more reliable buyer.

Some industry insiders viewed a valuation in the 150 billion to 200 billion won range as more realistic, based on applying a typical food-and-beverage industry multiple of seven to eight times the company’s earnings before interest, taxes, depreciation and amortization of 27.1 billion won last year.

LBM reported revenue of 79.6 billion won last year, up 121 percent from a year earlier. Operating profit rose 92 percent to 24.3 billion won, with an operating margin of 30.5 percent.

Launched in 2021 with a flagship store in Anguk-dong, central Seoul, the bagel chain became ground zero for the nation’s bagel boom, drawing long lines with its whimsical bagel creations and European-inspired, trend-conscious interiors.

It now operates six locations across the nation and is eyeing overseas expansion into Japan and Singapore.