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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Lotte Wellfood, the comprehensive food company of the Lotte Group (formerly Lotte Confectionery), is planning to sell off its bakery business, including production lines at factories in Suwon, Busan, and Jeungpyeong, through a full sale.
According to a report by Seoul Economic Daily on Sunday, Lotte Wellfood has decided to separate and sell the bakery business, including production lines and logistics networks, which distribute products under the "Kirin" brand to convenience stores nationwide. The company began distributing teaser letters (investment prospectuses) with details of the business to potential buyers at the end of last year. KB Securities is advising on the sale.
Lotte Wellfood is a subsidiary of the Lotte Group, manufacturing and distributing popular food brands such as Xylitol, Zero (low-sugar), Pepero, Pasteur, Kkokkalcon, and World Cone.
The assets up for sale include production facilities in Suwon, Busan, and Jeungpyeong, with an estimated sale price of approximately 1 to 1.2 trillion KRW. These factories supply bakery products to major convenience store chains such as 7-Eleven, GS25, CU, as well as large supermarkets including Lotte Mart, E-Mart, and Homeplus. Additionally, the factories supply bread to corporate clients in a B2B format, such as Lotte Ria, Isaac Toast, and large-scale catering businesses.
Last year, Lotte Wellfood attempted to sell the Jeungpyeong factory for about 210 billion KRW and selected Shilla Hotel as the preferred bidder. However, the deal fell through at the last minute, and the Jeungpyeong factory has now been included in the full sale package.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
