MBK Partners, the largest private equity firm in Korea, is pushing to acquire E-Land Retail's home interior brand Modern House following its earlier attempt to take over E-Land's restaurant brand E-Land Park.
Some industry analysts interpreted MBK's latest move as a way to create synergies with HomePlus, a discount store chain that MBK acquired from Britain's Tesco in 2015.
According to industry sources, MBK Partners expect to be able to more than double the sales of E-Land's restaurant brands and Modern House simply by having them located within HomePlus. Even for HomePlus, they could be developed into HomePlus' in-house brands, thereby contributing to upgrading the corporate value.
MBK's main acquisition targets are the family restaurant brand Ashley, the Korean buffet restaurant brand Nature Kitchen, and the Modern House. The number of shops run nationwide by these brands is estimated at 142, 48, and 51, respectively.
If these brands are acquired by MBK Partners and given spaces within HomePlus, they could add at least 100 more locations, which would contribute to boosting their sales and operating profit, and, in turn, more than doubling their corporate value.