Who We Are
What We Do
Our Experience
Businesses for Sale
Buyer’s Guide
Text
Audio
Other Resources
Let’s Talk
Daesang Corporation Acquires Lucky Foods in Oregon
Daesang Corporation, a public company based in Seoul, South Korea, and listed on the Korean Stock Exchange, operates in the food manufacturing sector. It acquired Lucky Foods, an Asian food manufacturer based in Oregon, United States, on June 19, 2023. Daesang acquired Lucky Foods to expand production and use Lucky Foods’ distribution channels in the United States.
Transaction Summary
The Facts of the Acquisition
- Target: Lucky Foods is a family-run manufacturer of authentic Asian food, based in Oregon, United States. It sells its products online and through distributors and sells under the brand “Seoul Kimchi.”
- Acquirer: Daesang Corporation is a large multinational food manufacturer based in Seoul, South Korea. It has offices in Vietnam, China, Japan, the Netherlands, and Indonesia and owns the brands Jongga, O’Foods, Miwon, and Chungjungone. Recently, Daesong set a vision to expand its operations into the United States and has aggressive targets for expansion by 2030. It has completed construction of its first kimchi (salted, fermented vegetables) factory in Los Angeles, California, and hopes to penetrate the U.S. market.
Our Take on the Acquisition
Daesang (acquirer) has a history of success within Korea and the Asian markets like China, Indonesia, Japan, and Vietnam. Acquiring Lucky Foods (target) should be considered a stepping stone in its vision to expand in the United States. Daesang plans to invest in expanding and upgrading Lucky Foods’ factory. Daesang aims to double production capacity and enhance automation in production. The company also plans to strengthen Lucky Foods’ sales and marketing. The acquisition will give Daesang a better foothold in the United States as it can use Lucky Foods’ existing distribution network to sell Daesang’s other products. Plus, Daesang’s kimchi factory in Los Angeles can also be used to produce Seoul Kimchi, which may have garnered more brand awareness than Daesang’s other brands.
The Transaction
| Date: | June 19, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand into the United States market |
| Acquirer’s Statement: | A Daesang official said – “We will accelerate the expansion of the kimchi business in the U.S. market through the acquisition by utilizing Lucky Foods’ product power and its infrastructure in the States. We are planning to strengthen marketing and research and development for our products in the U.S. too.” |
Target/Seller: Lucky Foods
Company Information
| Target: | Lucky Foods |
| Website: | luckyfood.com |
| Founded: | 1980 |
| Industry: | Food Manufacturing – Asian Foods |
| Type: | Private, family owned |
| Employees: | 28 (Unconfirmed Source: Kona Equity, a market intelligence firm) |
| Locations: | Corporation Headquarters and Manufacturing Unit: 11847 SW Itel St. Tualatin, Oregon, United States |
Product Information
| Products: | Kimchi – Fermented Korean dish made with seasoned vegetables Korean Sauces – Specialty sauces popular in Korea, made from authentic recipes and ingredients Korean-Style Pancakes – Savory snacks made from vegetables, mushrooms, and kimchi (salted, fermented vegetables) Spring Rolls – Ready-to-fry rolled snacks with a vegetable filling Sweet Pickled Ginger – Ready-to-eat pickled ginger, sometimes eaten with sushi |
| Market Reach: | United States |
Financial Information
| Revenue: | USD $5.23 million (Unconfirmed Source: Kona Equity) |
| Revenue per Employee: | USD $186,893 (Estimated based on the number of employees and the information from Kona Equity) |
Target/Seller Overview: Lucky Foods
Lucky Foods is a family-owned-and-operated Asian food manufacturer. The family immigrated to the United States in the 1970s and started the business in 1980. Lucky Foods specializes in authentic Asian appetizers. It focuses on nutritious, all-natural, healthy foods. All cuisines are free from genetically modified organisms, or GMOs, and monosodium glutamate, or MSG. They contain no preservatives, additives, or artificial flavors, and are trans-fat free using only the best local fresh ingredients. Lucky Foods provides a 100% vegetarian, natural, and healthy option for its customers. The company’s Seoul Kimchi brand accounts for two-thirds of its overall business, and it diversifies its business with various product lines, such as sauces and spring rolls.
Have Questions About Selling Your Business?
We’ve got answers.
Selling your business is a big deal – let us handle the details while you run your business.
Explore Your Options NowBuyer/Acquirer: Daesang Corporation
Company Information
| Buyer: | Daesang Corporation |
| Website: | daesang.com |
| Founded: | 1956 |
| Industry: | Food and Beverage Manufacturing – Asian Foods |
| Type: | Publicly Listed Company |
| Employees: | 3,025 (Source: Pitchbook) |
| Locations: | Korea Head Office #1: Daesang Building, 26 Cheonho-daero, Dongdaemun-gu, Seoul, Korea Sales Office #1: 4F Daesang Building, 470 Myeonmok-ro, Jungnang-gu, Seoul, Korea Research Institute: Daesang Central Research Institute, 697 Jungbu-daero, Mahjong-myeon, Icheon-si, Gyeonggi-do, Korea Factory #1: Dongtangiheung-ro 681beon-gil, Giheung-gu, Yongin-si, Gyeonggi-do, Korea Factory #2: 51 2gongdan 5-ro, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Korea Factory #3: 360 Dunchon-daero, Hungwon-gu, Seongnam-si, Gyeonggi-do, Korea Factory #4: 621-27 Gajang-ro, Osan-si, Gyeonggi-do, Korea Factory #5: 30 Sunchang-ro, Sunchang-eup, Sunchang-gun, Jeollabuk-do, Korea Factory #6: 36 Daegangnonggong-gil, Daegang-myeon, Danyang-gun, Chungcheongbuk-do, Korea Factory #7: 15 Cheongyong-gil, Hoengseong-eup, Hoengseong-gun, Gaangwon-do, Korea Factory #8: 48-38 Cheomdangieop 5-ro, Sandong-myeon, Gumi-si, Gyeongsangbuk-do, Korea Factory #9: 127 Seokgang 3-gil, Gajo-myeon, Geochang-gun, Gyeongsangnam-do, Korea Factory #10: 208 Oehang 1-gil, Gunsan-si, Jeollabuk-do, Korea Factory #11: Daesang 884 Oehang-ro, Gunsan-si, Jeollabuk-do, Korea Factory #12: 57 Oehang 4-gil, Gunsan-si, Jeollabuk-do, Korea China Head Office #2: Room B-301, Wanxiangcheng, Wuzhong Road, No. 1799, Minhang District, Shanghai Liaison Office #1: Room 301, 315, Building B, Shanghai MixC, No. 1799, Wuzhong Road, Minhang District, Shanghai, China Regional Office #1: 3A02, Building A, Boya International Center, No. 1 Lize Middle 1st Road, Chaoyang District, Beijing, China Regional Office #2: 21C, Block 4, Building 1, Tanglang City Plaza, East District, Liuxian, Shenzhen, China Regional Office #3: 668, Baoshan Road, ED-Area, Tanggu, Tianjin, China Regional Office #4: Unit 1404. 14/F, Tower 1, Magnet Place, 77-81 Container Port Road, Kwai Chung, New Territories, Hong Kong Factory #13: No. 12 Keji Road, Miyun Economic Development B, Beijing, China Factory #14: No. 26 Shenzhou Road, High-tech Industrial Development Zone, Donghai County, Lianyungang City, Jiangsu, China Indonesia Regional Office #5: JI. Perintis Kemerdekan No. 1-3 Pulo Gadung, Jakarta, Indonesia Factory #15: Jl. Pepelegi Indah No. 1 Waru Siadoraji, Surabaya, Indonesia Factory #16: Kec. Driyorejo, Kab.Greesik KM 24 Jawa Timur, Indonesia Japan Regional Office #6: 104 Hamariktu Parkside Place, Tsukiji, Chuo-ku, Tokyo, Japan Myanmar Liaison Office #2: Room 115, Yangon Hotel Office Building 1, No. 91/93, Pyay Road, 8th Mile Junction, Mayangone Township, Yangon, Myanmar Netherlands Regional Office #7: Van Heuven Goedhartlaan 935, 1181 LD Amstelveen, Netherlands Philippines Head Office #3: Unite 1101, Antel Global Corporate Center, Ortigas Center, No. 3 Dona Julia Vargas Ave., Pasig City, Philippines Sales Office #2: 708 7th Floor Taipan place B/D Emerald Ave. Ortigas Pasig City, Philippines Factory #17: Purok 6, Tablon, Cagayan De Oro City, Philippines Russia Liaison Office #3: 6F, 89/15, Lenina Str., Berdsk City, Novosibirskaya Oblast, Russian Federation Thailand Liaison Office #4: Suite C, 38th floor, Ocean Tower 2, Sukhumvit 19, North Klongtoey, Wattana, Bangkok, Thailand United States Head Office #4: One University Plaza, Suite 603, Hackensack, New Jersey, United States Regional Office #8: 2040 Davie Ave, Commerce, California, United States Vietnam Head Office #5: 19-8 Street, Mai Dich Ward, Cau Giay Dist., Hanoi, Vietnam Regional Office #9: Seaprodex Building, 3rd Floor, 20 Lang Ha, Dong Da, Hanoi, Vietnam Factory #18: Song Thao Str., Tho Son W., Viet Tri, Phu Tho Prov., Vietnam Factory #19: Block 14, Linh Trung EPZ II, Binh Chieu W., Thu Duc Dist., Ho Chi Minh City, Vietnam Factory #20: B2, Phuoc Minh W., Duong Minh Chau Dist., Tay Ninh Prov., Vietnam Factory #21: Lieu ha commune, Tan Lap ward, Yen My district, Hung Yen province, Vietnam |
Product Information
| Products: | Cooked meals – Ready-to-eat meals Kimchi – Fermented Korean dish made with seasoned vegetables MSG – Monosodium glutamate is a sodium salt and is used as a flavor enhancer Noodles – Unleavened dough rolled flat and cut, stretched into long strips Sauces – Specialty sauces made from authentic ingredients Seasoning – Herbs, spices, and salt to enhance flavor Sweeteners – Additive to enhance sweetener and a sugar alternative Tea – Aromatic beverage prepared with hot water over cured or fresh tea leaves |
| Market Reach: | Asia: China, Hong Kong, Indonesia, Japan, Myanmar, Philippines, Russia, South Korea, Taiwan, Thailand, and Vietnam Europe: Netherlands (and the European Union) North America: United States |
Financial Information
| Market Cap: | USD $470 million (2022) – Korea Stock Exchange |
| Revenue: | USD $3.16 billion (2022) |
| Revenue per Employee: | USD $1.05 million (Estimated based on the number of employees as reported on Pitchbook and revenue from audited financial statements) |
| EBITDA: | USD $200.07 million (2022) |
| P/E Ratio: | 9.52 |
| EV/EBITDA Ratio: | 5.7x |
Buyer/Acquirer Overview: Daesang Corporation
Daesang Corporation was established in 1956 with domestic capital and technology and strives to be a company that creates a healthy food culture. For the past 60 years, it has been one of the world’s top 3 companies specializing in fermentation. Fermentation is a process where small living things like bacteria and yeast transform sugars into new flavors and textures in food and drinks. Daesang has also been recognized as the leading general food company in Korea. It went public in 1969 to expand operations in other Asian countries.
Daesang Corp is a part of the packaged foods industry. It is one of South Korea’s leading producers of consumer foods and food additives, cornstarch, and other wet corn milling products. Daesang is Korea’s leading producer of MSG, with a market share of approximately 75%. In addition to MSG, Daesang has a fermentation business that produces a variety of artificial sweeteners. The company’s business relates to the production and distribution of food items such as marinade sauces, canned foods, seasonings, soups and noodles, and health foods and beverages. It also sells food ingredients, such as corn syrup, crystalline fructose, corn syrup, corn starch, fish paste starch, and others. Its marketing channel comprises direct sales through stores and sales agents.
While the majority of Daesang’s sales come from South Korea, the company has a long-established international presence, with production plants in Indonesia and Vietnam, and trade subsidiaries in Europe, Japan, the United States, China, and other Asian markets.
Would you like more information on this transaction?
If there is any additional category of information you would like to see us include on future acquisition announcements, please contact us.
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources