Korean PEF to buy Outback Steakhouse Korea

[THE INVESTOR] South Korean private equity firm SkyLake Investment plans to acquire Outback Steakhouse Korea, the Australian-themed US restaurant chain.

The Nasdaq-listed Bloomin’ Brands, which owns the chain, selected the PEF as a preferred bidder for its 100 percent stake in the restaurant, according to sources in the investment banks industry on June 30.

Bloomin’ Brands and SkyLake Investment are expected to ink a stock purchase agreement as early as July 1 in a deal worth around 55 billion won (US$476 million).

Outback Steakhouse Korea in 2014 ran nearly 110 restaurants across Korea, but the store count has now reduced to less than 70, suffering from sales drop amid intensifying competition in the local casual dining segment and the broad economy’s struggle.

It is still the No. 1 player with a 23 percent share of the local market.

By Park Han-na (hnpark@heraldcorp.com)