South Korean private equity firm JKL Partners is preparing a shortlist of bidders for the sale of Cleantopia, the country’s largest laundry franchise operator, in a deal that could value the business between KRW700bn and KRW800bn (approximately $504m-$576m), according to a report by the Korean Economic Daily citing investment banking sources.
The process, advised by UBS and Samil PwC, has attracted interest from several global private equity funds, with JKL aiming to finalise the transaction by year-end.
JKL, which acquired Cleantopia for KRW190bn, is targeting a more than 3x return on investment, underpinned by significant earnings growth and business expansion into B2B segments such as hospital and elderly care facilities. The company also continues to scale its laundromat network, now supported by approximately 3,200 franchise locations nationwide.
Cleantopia is expected to generate over KRW50bn in EBITDA this year, up 40% from KRW36.5bn in 2024. At the current asking price, the business is being marketed at a forward EBITDA multiple of 12x to 16x, well above the sector average of 8x-10x for everyday service-based businesses.
The company’s asset-light model, underpinned by stable franchise fee income and minimal fixed overhead, has made it an attractive target for financial sponsors seeking predictable cash flows and scalable operating platforms.
However, regulatory headwinds may weigh on future growth. Recent proposals by the Ministry of SMEs and Startups to designate industrial laundry services as a protected sector for small and mid-sized enterprises could constrain Cleantopia’s B2B expansion strategy.
Market observers draw parallels with Juno Hair, South Korea’s leading premium salon chain, which has also drawn private equity interest. Blackstone is reportedly in talks to acquire Juno at a similar valuation of KRW800bn, with both companies posting comparable EBITDA figures in 2024 of KRW37bn.
