Alternative investment major Baring Private Equity Asia (BPEA) has sold Korean domestic parcel delivery company Logen to Daemyung Chemical Group, a company specialising in fashion and logistics, for $324 million.
Logen will be acquired by Daemyung’s publicly-listed fashion retailing subsidiary Cowell Fashion, according to a statement.
The deal came after Logen had achieved its highest year of parcel deliveries and financial performance, due to increased home deliveries throughout the Covid-19 pandemic. According to BPEA, the transaction is expected to be completed in the third quarter of the year.
BPEA acquired 100% ownership of Logen in 2013 for an undisclosed amount. Following the deal, the PE firm worked closely with Logen’s management to transform the company by reinforcing its leadership team and steering operating efficiency enhancement initiatives.
BPEA managing director Han Chul Kim said the firm has identified Logen as a market leader in 2013, and that the company is well-positioned to benefit from the long-term trend towards e-commerce.
“The company’s leading position has been validated in recent years, in particular during 2020 which was its strongest year on record. Logen now processes 272 million parcels every year, almost 2.5 times more than when we initially invested,” Kim added.
Logen CEO Jungho Choi said the company has benefited from BPEA’s support and guidance throughout its ownership, which was critical in growing the business. “As one of the fastest-growing parcel delivery companies in Korea today, we are excited for the future potential of the business following the acquisition.”
Founded in 1999, Logen currently operates a nationwide network of more than 310 agencies managing over 7,200 truck drivers who handle 272 million parcels annually.
BPEA is one of Asia’s largest private alternative investment firms with $23 billion assets under management. The firm runs a private equity programme for buyouts and investments in companies with operations in the Asia Pacific region.
In May, BPEA offloaded 8.36% of its equity stake in IT services firm Coforge Ltd via open market transactions for $221 million. According to the latest shareholding pattern, Hulst BV, an entity controlled by the firm, held a 63.99% stake in Coforge.
In the same month, it was also reported that the International Finance Corporation has proposed a $40 million investment in BPEA’s latest India-focused credit fund, BPEA Credit – India Fund III. The firm is seeking to raise $500 million in capital commitments for the fund, which will invest predominantly in senior debt instruments of corporates that are based in or have substantial operations in India.