Seoul-based buyout firm UCK Partners has launched the sale of Umji Food Co., a Korean frozen food maker valued at up to 300 billion won ($201.5 million), in a deal attracting strong interest from both strategic buyers and financial investors amid the surging global popularity of Korean cuisine.
UCK has hired Samjong KPMG to run the auction and has sent out teaser letters to potential bidders, according to investment banking sources on Monday.
The valuation for the company ranges between 200 billion and 300 billion won, they said.
Umji is expected to generate about 12 billion won in earnings before interest, taxes, depreciation and amortization (EBITDA) for 2025, with adjusted EBITDA projected to reach 25 billion won next year once merger synergies are fully reflected, according to people familiar with the company’s forecasts.
As a supplier to Costco, Umji has also secured a contract to deliver frozen dumplings and fried rice to more than 50 Sam’s Club outlets in the US starting next year, underscoring its growing overseas footprint.
Industry observers say the expansion makes the mid-sized Korean food maker a compelling target for other mid-sized food groups and financial investors at home and abroad.
Umji operates largely as a food original equipment manufacturer, specializing in frozen dumplings and fried rice, two of Korea’s most competitive frozen categories.
It has also expanded into the business-to-consumer market, setting it apart from traditional OEM players.
UCK acquired Umji in 2022, followed by Suji’s Cuisine in 2023, and then merged the two in May to build scale ahead of a potential divestment.
While Suji’s lacks production facilities, it is known for product development, design and marketing strengths.
Together, the combined company can produce dumplings, fried rice and processed meat dishes that account for more than 70% of Korea’s ready-to-eat meal market.
Analysts say few mid-sized Korean food companies can match Umji’s breadth of capabilities, which now span manufacturing, planning, distribution, marketing and overseas sales, making it a rare player outside the country’s dominant food conglomerates.
By Jong-Kwan Park
pjk@hankyung.com
Sookyung Seo edited this article.
