GEN Restaurant Group receives $100m offer for US operations
Undisclosed buyer submits non-binding letter of intent to acquire US restaurant assets, allowing GEN to retain its retail and CPG divisions.
GEN Restaurant Group, the operator behind the GEN Korean BBQ chain, has received a non-binding letter of intent from an undisclosed multi-concept restaurant operator to acquire its US restaurant operations for $100 million. The proposal outlines the purchase of the restaurant assets and the assumption of related leases, marking a significant potential shift in the company’s corporate structure.
Under the indicative terms of the deal, GEN would retain 100% ownership of its consumer packaged goods (CPG) and retail business. This strategic move would effectively transition the company into a pure-play CPG entity, separating its food manufacturing and retail arm from its physical dining locations.
GEN chairman and chief executive David Kim described the proposal as a testament to the brand's value. He stated that the board, in conjunction with financial and legal advisors, would carefully evaluate the offer to determine the path that serves the best interests of the company and its shareholders.
The company argues that the transaction would strengthen its balance sheet while allowing management to focus on its packaged-goods sector, which it describes as rapidly growing. Kim noted that CPG growth requires significantly less capital than restaurant expansion, positioning the firm for future stability.
GEN currently operates 54 restaurants in the US and is described as one of the largest Asian casual dining concepts in the country. The original report detailing the offer was published by Verdict Food Service, a brand owned by GlobalData.
