STIC Investments set to acquire laundry chain Cleantopia

STIC Investments Inc., a Seoul-based private equity firm, is set to acquire Cleantopia, South Korea’s largest laundry service franchise operator, for around 600 billion-650 billion won ($431 million-466 million), according to investment banking sources on Friday.

JKL Partners, a South Korean buyout firm, is slated to name STIC Investments as the preferred bidder of Cleantopia, which it purchased for 190 billion won in 2021, said sources with knowledge of the matter.

In an unusual move, JKL skipped the final bidding round to fast-track the sale, which had drawn interest from several global buyout giants.

JKL has been under pressure to divest Lotte Non-Life Insurance Co., one of its core portfolio companies, but in financial distress.

In 2025, Cleantopia’s earnings before interest, tax, depreciation and amortization (EBITDA) is forecast to exceed 50 billion won, about a 40% increase from 36.5 billion won in 2024.

The laundry chain operates a network of around 3,200 franchisees nationwide after expanding into the business-to-business market – providing laundry services to hospitals and caregiving facilities.

Write to Eun-Kyung Song at norae@hankyung.com
Yeonhee Kim edited this article.