Blackstone buys Korean drug distributor
The Blackstone Group has acquired Geo-Young, a South Korean wholesale drug distributor, working in conjunction with the founders. It facilitates an exit for local GP Anchor Equity Partners, which invested in the company in 2013.
The size of the transaction has not been disclosed, but Blackstone will reportedly buy Anchor’s entire interest at a valuation of around KRW1 trillion ($859 million). It is unclear whether additional shareholders are selling their positions. Based on that valuation, it would be the private equity firm’s largest investment in Korea since committing KRW300 billion to handbag maker Simone in 2015.
According to AVCJ Research, Anchor purchased a 25% interest from Goldman Sachs – the Anchor team spun out from the bank’s principal investment area group – and acquired around 20% more from other shareholders. It also subscribed to a convertible bond that would increase its holding to 57.6%. The aggregate commitment was KRW155 billion, with Canada Pension Plan Investment Board (CPPIB) and AlpInvest Partners participating as co-investors.
Founded in 2002 by Sun-Hae Cho, Geo-Young claims to be the first company in Korea’s pharmaceutical industry to surpass $1 billion in annual revenue. It serves more than 250 multinational and domestic pharmaceutical and medical device companies, distributing to more than 11,000 pharmacies, hospitals, and clinics through a nationwide logistics network. Following Blackstone’s investment, Cho will remain a shareholder in the business and retain her leadership position.
“Under Chairwoman Cho’s leadership, Geo-Young has become a market-leading healthcare distribution platform in Korea, with nationwide logistics and supply chain capabilities and differentiated service offerings,” Ed Huang, a senior managing director at Blackstone, said in a statement. He added that the firm would leverage its global resources and expertise in healthcare and distribution to support growth.
Blackstone has historically been active in Korea through a KRW600 billion joint venture fund raised with Woori Private Equity in 2010. It has backed businesses such as NS Home Shopping, iMarketKorea, and Acushnet Holdings. The latter company, which owns a range of golf brands including Titleist, listed in the US in 2016.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.