JKL Partners Inc., a Seoul-based private equity firm, is set to acquire London Bagel Museum, a growing sensation in South Korea’s booming premium casual dining scene, for slightly over 200 billion won ($150 million).
JKL Partners is in final-stage negotiations to sign a share purchase agreement with LBM, the operator of the bagel franchise, people familiar with the matter said on Thursday.
JKL emerged as the front-runner after the original favorite, Aeneas Private Equity, failed to secure timely funding despite offering a higher price, estimated at 300 billion won, during initial bidding, sources said.
London Bagel Museum's bagels and sandwiches Since opening its first outlet near Seoul’s Anguk station in 2021, the chain has earned a devoted fan base drawn to its chewy bagels, whimsical branding and Instagram-ready interiors.
In addition to the store’s distinctive British ambiance, its bagels' crunchy, golden-brown crust and chewy insides went viral among bagel enthusiasts, and the outlet has become a must-visit for locals and tourists alike, according to industry officials.
With queues spilling out into the streets, London Bagel Museum recently added three outlets in Seoul and another on the country’s resort island of Jeju. London Bagel Museum also plans to expand into Japan and Singapore this year.
JKL Partners is a Seoul-based private equity firm (Screenshot captured from its website) LBM said in February it attracted about 10 potential investors — both strategic and financial, including those from overseas — for the sale of the 100% stake.
Bank of America is managing the stake sale for LBM.
SMALL BUT PROFITABLE
LBM posted 24.2 billion won in operating profit on sales of 79.6 billion won last year.
Its 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) were 26 billion won.
JKL Partners is a Seoul-based private equity firm (Screenshot captured from its website) Besides London Bagel, LBM also operates other bakery franchises such as Artist Bakery, Café Layered and Café Highwaist.
The deal highlights a broader trend among private equity firms seeking exposure to “ownership brands” — small but highly influential consumer businesses heavily shaped by their founders’ vision.
Market watchers are paying close attention to how JKL navigates the brand’s unique DNA, particularly given LBM’s strong founder-led identity.
Many customers associate the brand’s appeal with the founder’s aesthetic sensibility and curatorial eye, making post-acquisition continuity a potential challenge.
A London Bagel Museum outlet in Seoul Sources said the shareholding agreement between JKL and LBM may include provisions for the founder and existing management to retain a minority stake or continue in a creative leadership role.
“The emotional equity that consumers place in brands like LBM is not easily replicated,” said a Seoul-based food and beverage investor.
Founded in 2001, JKL Partners has about 3.3 trillion won in assets under management, operating 10 PE funds and 21 portfolio companies.
Write to Da-Eun Choi at max@hankyung.com In-Soo Nam edited this article.
