이 기사는 2020년 05월 14일 08:00 thebell 에 표출된 기사입니다.

FND Net, South Korea’s health functional food company backed by the nation’s private equity firm Unison Capital, is showing solid financial performance on the back of its strong distribution network.

FND Net is showing a steady growth, with the company’s sales and operating profit increasing by 15 percent and 30 percent, respectively, in the first quarter of this year, compared to the same period in 2019.

A robust offline network based on 4500 hospital and 3100 pharmacy channels is considered the company’s biggest strength. FND Net is operating 120 exclusive in-shop stores in large-sized hospitals and 130 trained consultants are directly selling the products.

Unison Capital acquired FND Net in July 2017. At an EV/EBTIDA multiple of 10, FND Net’s EBITDA in 2017 translated into an enterprise value of around 100 billion won. The PE firm bet on FND Net’s growth potential despite growing concerns over market saturation. The firm has maintained zero borrowing since the acquisition.

The PE firm has systemized the management methods in a bid to maximize the company’s growth potential. Unison Capital has developed a monitoring system that provides real-time information on margin and productivity of each channel, which has enabled the company to construct marketing strategies more nimbly.

The PE firm also has expanded product line-ups from health supplements to cosmetics. FND Net’s cosmetic products have attracted customers through positive word-of-mouth in hospitals and pharmacies, which indicates the company has potential as a distribution platform.

The combination of robust distribution channels and Unison Capital’s value-up strategy has led to a positive financial performance. FND Net recorded sales of 42 billion won and an operating profit of 7.6 billion won in 2017 when it was acquired by Unison Capital. In 2019, the company posted sales of 52.7 billion won and an operating profit of 8.9 billion won, showing a stable growth.

Unison Capital expects FND Net to record sales of 65 billion won and an operating profit of 12 billion won this year. The PE firm initially expected the outbreak of the coronavirus will have a negative impact on the company’s financial performance, but it turned out that its sales have increased with more people visiting pharmacies. The increase in sales is also a result of rising concerns about the health.

Such achievements have heightened expectations for Unison Capital’s exit plan. Unison Capital, which invested in FND Net via its first blind-pool fund, is currently working on the exit of its portfolio companies in the fund. The remaining portfolio companies in its first blind-pool fund include P2P Systems, more commonly known as its meeting-space company Toz, FND Net and Rosen Cheese & Food.

FND Net is likely to garner strong interest from multiple strategic investors thanks to its stable growth and a robust distribution network. Some market observers expect the company’s enterprise value may have almost doubled from approximately 100 billion won since the acquisition.

“FND Net has continued to grow by improving its management efficiency and expanding its distribution channels. Prospective buyers will be attracted to the fact that the solid growth trend has continued despite the outbreak of the coronavirus,” an investment banking industry source said.

(By reporter Choi Ik-hwan)