Global buyout firm CVC Capital Partners has bought South Korean parcel delivery firm Logen Group from Hong Kong-based private equity firm Baring Private Equity Asia, according to a statement from CVC.
Financial details of the transaction were not disclosed, but CVC reportedly paid around KRW 300 billion ($300 million; €242 million), beating The Carlyle Group and Affinity Equity Partners, who were also vying for the company.
Global courier giants Deutsche Post DHL Group and United Parcel Services are said to have submitted preliminary offers for Logen. However both firms dropped out of the running in June this year because of differences over pricing.
Baring Asia will likely make a tidy profit from the exit, having bought Logen in 2013 from Korean private equity firm Mirae Asset Private Equity for about KRW 200 billion.
CVC, which manages over $33 billion of assets, is currently investing its fourth pan-Asia buyout fund, the $3.5 billion 2013-vintage CVC Asia-Pacific Fund IV, according to PEI data. Fund IV targets businesses benefitting from increased consumer affluence and domestic demand in China, Japan, Korea and South-East Asia.
In August the firm bought a 15 percent stake in Indonesian hospital operator PT Siloam International Hospitals for $166 million. A month earlier, it completed a $1.1 billion take-private transaction of Malaysian funeral services provider Nirvana Asia.
Other investments the firm has made in Korea include quick service restaurant SRS Korea, manufacturing company Dayou Winia, and multiplex cinema operator CJ CGV.
“The growth of South Korea’s e-commerce and online shopping industry has created significant growth opportunities for delivery companies,” said Steve Lim, partner and chairman of CVC Korea.
South Korea’s e-commerce market is the third largest in Asia by transactions volume after China and Japan. Data from Korean statistics and analysis service KOSTAT shows that the value of online transactions increases by about 16 percent every year. E-commerce sales reached roughly $37 billion in 2015, and is expected to surpass $50 billion by 2018.
Logen is the fourth logistic company in Korea by assets. It has a nationwide pick-up and delivery network of 410 agencies, and last year, the company bought a 70 percent stake in KGB Logis Co for KRW 25 billion, making it the industry’s fourth biggest courier services company with a combined market share of over 10 percent.