Lotte Wellfood is selling its bakery division, which supplies bread to South Korean convenience stores and restaurant chains, as the company reshapes its portfolio following a 2021 merger.
The food unit of Lotte Group hired KB Securities to oversee the sale of production facilities in Suwon, Busan, and Jeungpyeong, according to people familiar with the matter. The deal could fetch up to 120 billion won ($92 million).
The KIRIN brand bakery business counts 7-Eleven, GS25 and major supermarket chains among its clients, while also supplying to restaurant chains like Isaac Toast. The sale comes after a failed attempt last year to offload just the Jeungpyeong factory to Shilla Myungga for 21 billion won.
Proceeds from the deal will help fund the company’s 222 billion won expansion of its Cheonan ice cream facility. The maker of Pepero snacks is also eyeing growth in India, where it plans to start local production of the chocolate-coated cookie sticks this year.
The restructuring highlights broader changes at Lotte Group. Its beverage arm recently ended talks with a global company over the sale of its soju business due to price disagreements, though private equity funds continue to eye various parts of the drinks division.
