BARING PRIVATE EQUITY ASIA EXITS KOREAN E-COMMERCE PARCEL DELIVERY COMPANY LOGEN TO DAEMYUNG CHEMICAL GROUP FOR $324 MILLION
Hong Kong, 9 July 2021 – Baring Private Equity Asia today announced that its affiliated private equity funds (“BPEA”) have sold leading Korean domestic parcel delivery company Logen to Daemyung Chemical Group (“Daemyung”) for a total enterprise value of $324 million. Logen will be acquired by Daemyung’s publicly listed fashion retailing subsidiary, Cowell Fashion.
Founded in 1999, Logen is one of the leading domestic parcel delivery companies in Korea and an industry leader. It currently operates a nationwide network of more than 310 agencies managing over 7,200 truck drivers that handle 272 million parcels annually.
BPEA acquired 100% ownership of Logen in 2013. Since that time, BPEA worked closely with Logen’s management to transform the company by reinforcing the leadership team, leading operational efficiency enhancement initiatives, including the implementation of a volume forecasting system and automatic route optimization at terminals, and restructuring its product offerings to focus on more profitable price segments. More recently, during the COVID-19 pandemic, lockdowns and increased home deliveries expedited the structural shift from offline to online retail, supporting the key theme of BPEA’s original investment thesis. The sale comes after Logen achieved its highest ever year of parcel deliveries and financial performance.
Han Chul KIM, Managing Director of BPEA, commented: “We are pleased to have supported the company’s transformational growth during our ownership period. We had identified Logen as a market leader back in 2013 that was 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. We thank Logen’s management, who have been instrumental in driving the company’s growth. We believe the business is in good hands and has the potential to continue its growth trajectory in the coming years.”
Jungho Choi, CEO of Logen, commented: “We have benefitted from BPEA’s support and guidance throughout their 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.”
The transaction is expected to complete later in Q3, subject to customary regulatory approvals.
For media inquiries, please contact:
+852 5970 3618