Baring Asia completes Korea parcel delivery buyout
Baring Private Equity Asia has announced the acquisition of South Korean courier firm Logen. Details of the deal, said to be worth around KRW160 billion ($140 million), emerged last month prior to closing. The seller is Mirae Asset Private Equity.
Logen is the leading parcel delivery company that focuses on small to mid-volume customers. Its nationwide network of seven terminals, two sub-terminals, 215 agencies and 4,353 truck drivers handled more than 100 million parcels in 2012.
"South Korea has the highest online retail and high-speed broadband penetration rate in the world. We expect the parcel delivery industry to continue to be the beneficiary of these favorable macro trends," said Dar Chen, managing director at Baring Asia.
According to AVCJ Research, Mirae bought Logen from Korean conglomerate Eugene Corporation in late 2010, paying KRW58.8 billion for a 71.4% stake. It subsequently acquired the remainder of the business from another shareholder, HTIC-Second Fund, for KRW21.2 billion.
Eugene invested in Logen in 2007 as part of a broader effort to establish itself in the logistics sector. The divestment was driven by a need to improve the group's financial structure.
This is Baring Asia's second Korea deal from its fifth pan-regional fund, which closed at $2.46 billion in 2011. The first deal came last August when the firm participated in a KRW1.2 trillion investment in Kyobo Life Insurance.
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