The outlook for parcel delivery firms is incredibly bright. The explosive growth of online shopping is also a boon for parcel delivery firms. However, Carlyle’s involvement in the Logen bid may not necessarily translate into a higher price tag. While Logen does not have its own logistics infrastructure, it does charge fees to match transport companies with individual businessmen. In the current climate, the company may be in a position to reap even more profits.
As one of the largest apparel brands in the world, Logen’s global logistics service could significantly benefit Cowell Fashion. The company already distributes apparel and accessories under licensed brands. In addition to apparel, Logen also provides a wide variety of services to the fashion industry, including the distribution of electronic components. In addition, the expansion of Cowell Fashion’s business to include logistics is likely to create significant synergies.
Daemyung Chemical Group is purchasing Logen from Baring Private Equity Asia. The company will pay $324 million for the logistics company, including the transfer of BPEA’s 100% stake in Logen. The transaction is expected to close in October. The deal will also bring significant synergies to the Daemyung group’s other publicly traded brands. Specifically, the move will help Cowell Fashion expand its online business.
Daemyung Chemical Group
The Daemyung Chemical Group has agreed to acquire a 100% stake in Logen, a KOSDAQ-listed warehouse and transportation-related services company. The transaction is expected to close later this year. The deal is expected to create significant synergies between Logen and Cowell Fashion. Both companies are expected to expand their business through logistics. The deal is expected to provide BPEA with an additional source of capital.
The deal was announced last month. Dae Myung and BPEA initially tried to sell the Korean domestic parcel delivery company to the CVC Capital Partners, which ultimately failed to close the deal. But Dae Myung and PEF were determined to pursue an IPO instead, which they did in 2016.
Mirae Asset Private Equity
In addition to investing in the logistics sector, Mirae Asset Private Equity also has an interest in hospitals. The firm plans to invest between 2.5 trillion and 3 trillion won in logen logistics over the next five years. The fund will finance half of its investments through debt. Mirae Asset aims to achieve a 10% internal rate of return annually on its investments. The firm has shifted away from traditional investments in hotels and into logistics centers.
In 2015, the company put up for sale, but failed to attract any interest from local conglomerates. Logen Logistics’ operating profit increased by 24.4% year-on-year in 2015 and it is now considered to have a good price. However, the market watchers are speculating that the company will sell for 300 to 400 billion won. While the company’s valuation has been on the rise, Mirae Asset Private Equity is a savvy buyer and may be looking for a bargain.
Well to Sea Investment
In June last year, Logen Logistics selected Well to Sea Investment as its preferred bidder. But Well to Sea Investment could not find the necessary investors to buy the company. The company has shown interest from several other investors, including CJ Partners and Credian Partners. Today, Logen is the fourth-largest package delivery company in Korea. And if the deal is approved, it will make Logen a global player.
Baring Private Equity Asia is in the final stages of talks to sell Logen Co. Ltd., South Korea’s no. 4 parcel delivery company, for over $300 million. Under the deal, Baring PE Asia is selling its 100% stake in the company to Well to Sea Investment, a Korean strategic investor. However, the sale process could take longer than expected. Currently, Logen’s management team is in the midst of a recapitalization process. The company is restructuring its equity and debt ratios to make it more stable. This process is expected to be completed in August. M&A negotiations are expected to follow.