South Korea’s three biggest local whiskey brands, which import raw whiskey from abroad but distribute it domestically, are all up for sale.
According to the investment banking industry on March 28, Golden Blue, Windsor Global, and Drinks International (which operates Imperial) have been seeking buyers for their controlling stakes and have been in talks with potential investors since last year.
Golden Blue, Windsor, and Imperial have long dominated the local whiskey market. Golden Blue holds around 60% of the market, Windsor has 30%, and Imperial and other brands share the remaining 10%. Since none of them disclose sales figures, exact market shares remain unclear.
Golden Blue is reportedly targeting a valuation of 300 to 350 billion won ($239 million). The entire 81.65% controlling stake, held by the founding family, is up for sale. Chairman Park Yong-soo’s daughters, Park Dong-young and CEO Park So-young, each hold 22.4%, while Park and his wife, Kim Hye-ja, hold 18.41% and 18.45%, respectively. The family is actively seeking to sell their stake.
Golden Blue initially aimed for a 600 billion won ($410 million) valuation but later lowered expectations to around 400 billion won ($273 million). The company argues that since Windsor Global, with a 30% market share, sold for 200 billion won ($137 million), Golden Blue should be valued at over 400 billion won given its larger share.
“Teaser letters with pricing details have been circulating since last year,” an investment banking source said. “Potential buyers were offered more information under a non-disclosure agreement, but with the valuation set at 300 billion won, there hasn’t been much interest.”
Windsor Global is reportedly seeking around 230 billion won. This includes a 30 billion won premium over the 200 billion won price paid by Pine Tree Investment & Management when it acquired the company from Diageo early last year.
At the time, Windsor Global contributed 54 billion won toward the 200 billion won acquisition price, with the rest financed through a loan from Woori Bank. Pine Tree Investment & Management invested 50 billion won, but only 10 billion won was converted into equity, while the remaining 40 billion won remains in a fund.
Drinks International, which owns the Imperial brand in South Korea, is looking for a valuation of about 80 billion won. The stake for sale is the entire 100% owned by Chairman Kim Il-joo.
The company currently holds the Korean distribution rights for the Imperial brand, while ownership remains with the French company Pernod Ricard. Drinks International plans to acquire the brand for 60 billion won to boost its valuation and then sell the business for 80 billion won. Chairman Kim is in the process of raising funds for the acquisition but is reportedly struggling due to valuation disagreements with potential investors.
Meanwhile, a Golden Blue representative dismissed the reports, saying, “The claims about a sale are completely baseless.”
