KTB, Q Capital agree $354m exit from Korea's Dongbu Express

Dongwon, which has interests spanning fisheries, logistics, and food processing and distribution, said in a filing that it would acquire 5.44 million shares - comprising 2.27 million in common stock and 3.17 million in preferred shares - from DBEX Holdings. The purpose of the deal is to develop its logistics capabilities and exploit synergies with Dongwu Express' operations.

KTB and Q Capital bought the company in May 2014 through a dedicated project fund for KRW307.4 billion. It is one of several divestments made by Dongbu Group, which has struggled with its debt burden ever since the global financial crisis. The conglomerate's construction arm, Dongbu Corporation, filed for receivership in January 2015 and was bought by Keystone Private Equity earlier this year.

Dongbu Express was founded in 1971 as a bus transportation business and gradually diversified its operations over the next 30 years. In 2000, the company merged with Dongbu Corporation but was spun off into a separate entity in 2011. Services include port unloading, freight transportation, domestic and international third-party logistics, and passenger transportation covering buses, car rental and taxis.

Revenue came to KRW719.5 billion in 2015, down from KRW815.2 billion a year earlier. Over the same period, net profit fell to KRW18.4 billion from KRW22.1 billion.

This is the second agreed transaction this year in Korea's logistics space involving private equity. In September, CVC Capital Partners said it would buy Logen, the leading domestic courier company focused on small to mid-volume customers, from Baring Private Equity Asia for a reported KRW300 billion. Baring acquired the asset from Mirae Asset Private Equity in 2013.

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• Topics
• North Asia
• Trade sale
• Support services
• South Korea
• Exit
• Logistics
• KTB Securities