이 기사는 2021년 07월 13일 07:53 thebell 에 표출된 기사입니다.

Hong Kong-based Baring Private Equity Asia (BPEA) has agreed to sell Logen to Cowell Fashion, making a successful exit from its eight-year investment in the South Korean parcel delivery service company.

Kosdaq-listed Cowell Fashion said in a regulatory filing on Friday that it had signed a deal to buy BPEA’s 100% stake in Logen for 340 billion won ($296.5 million) through its special purpose entity CF Investment. The transaction is expected to close in October.

The deal came after several failed attempts by BPEA to exit its investment in the logistics company. CVC Capital Partners had agreed to buy the company in September 2016, but the deal ultimately fell through after a two-year dispute between the two firms was settled by the Hong Kong International Arbitration Center in 2018. Many other investors showed interest in the company but no deal had been struck.

BPEA restarted a sale process for Logen in early this year. A select group of potential buyers including Cowell Fashion were invited to bid for the company and negotiations began in earnest in May.

Cowell Fashion reportedly expressed stronger interest in acquiring Logen compared to other suitors, and also had strong funding capability. This apparently appealed to BPEA, which placed the certainty of the deal closing as a top priority.

Cowell Fashion produces electronic parts, and also designs, manufactures and distributes apparel and accessories of licensed brands including Adidas, Puma, Calvin Klein and Reebok. Logen’s logistics service is likely to create significant synergy with Cowell Fashion and its retail subsidiaries. With the acquisition, it is also set to expand its business to include logistics.

Cowell Fashion recorded revenue of 426.4 billion won and earnings before interest, taxes, depreciation and amortization (EBITDA) of 85.5 billion won in 2020 on a consolidated basis. It is 48.78% owned by Dae Myung Chemical, which is a privately-held company producing plastic films and sheets. Dae Myung Chemical’s consolidated revenue and EBITDA were 1.3 trillion won and 223.2 billion won, respectively, last year.

Logen is the fourth largest company in the country’s parcel delivery market by market share. Its earnings have increased in recent years, with revenue and EBITDA growing to 512.8 billion won and 47 billion won in 2020.

Citigroup Global Markets Securities acted as financial adviser to BPEA, and Shin & Kim served as legal counsel. Cowell Fashion received legal advice from Lee & Ko. (Reporting by Hee-yeon Han)