Orchestra PE Completes Acquisition of "Mammoth Coffee"

Acquisition of 100% Shares in Mammoth Coffee Lab and Seojin Roasters
Seventh Fund Established, Managing a Cumulative 450 Billion Won in Assets

Orchestra Private Equity (hereinafter Orchestra PE) announced on May 29 that it has completed the acquisition of the budget coffee franchise "Mammoth Coffee."

Orchestra PE has acquired 100% of the shares of both "Mammoth Coffee Lab," the operator of Mammoth Coffee, and "Seojin Roasters," a coffee bean roasting company. Through this acquisition, Orchestra has established its seventh fund and is now managing a cumulative total of approximately 450 billion won in assets under management. Mammoth Coffee Lab manages around 900 franchise locations nationwide and records about 85 billion won in annual sales. Seojin Roasters' sales amount to approximately 23 billion won.

Mammoth Coffee has built a business model suitable for franchise expansion based on an efficient operating system, including kiosk-based ordering and automated manufacturing processes. It has also strengthened customer engagement through digital channels such as mobile-based ordering and payment. Additionally, by leveraging in-house roasting capabilities through Seojin Roasters, it has achieved cost competitiveness and supply stability through vertical integration.

The new CEO of Mammoth Coffee will be Lee Changhun. Based on his experience leading business growth and operational advancements during Orchestra's investment period in KFC Korea, Lee will oversee the execution of Mammoth Coffee’s growth strategies. He stated, "Mammoth Coffee's future growth initiatives will focus on continued store openings and operational upgrades in the domestic market, as well as enhancing the digital customer experience. In overseas markets, we plan to pursue a phased market entry and expansion strategy by targeting structural gaps in Japan’s budget coffee segment."

Orchestra PE plans to leverage its accumulated experience in the food service and franchise industry to enhance Mammoth Coffee’s corporate value. Orchestra PE recently completed the successful sale of KFC Korea. Jay Kim, a partner at Orchestra, commented, "Mammoth Coffee is a platform with a structure that combines operational efficiency and scalability. Based on our proven execution experience in the food service and franchise sector, Orchestra will boost the execution of its domestic growth strategy while also seeking practical growth opportunities in the Japanese market."

For this transaction, Samduk Accounting Corporation served as the financial and tax advisor, Kearney provided management consulting, and legal advisory was handled by Bae, Kim & Lee LLC.

This content was produced with the assistance of AI translation services.