DHL, UPS Bid for South Korea’s Logen Logistics

Deutsche Post DHL Group and UPS are reportedly among the companies which have submitted preliminary offers for South Korean package delivery firm Logen Logistics.

According to a report published by The Korea Herald today (18 March), Affinity Equity Partners, CVC Capital Partners and STIC Investment were also among the bidders.

Logen is currently wholly owned by Hong Kong-based Baring Private Equity Asia, which bought the delivery specialist from Mirae Asset Private Equity in 2013.

Logen is reported to be the fourth largest courier services company in South Korea – behind CJ Korea Express, Hyundai Logistics and Hanjin Transportation.

Global logistics companies UPS and DHL are eying Logen amid burgeoning e-commerce and online shopping in Korea and as part of expansion to the Asian market.

Private equity firms also believe the logistics business is lucrative investment.

Moreover, Logen is a solid company with a loyal client base and growing earnings.

Unlike other parcel delivery service companies, Logen is based on the customer to customer (C2C) business that connects deals between merchants and consumers.

Logen last year bought a 70 percent stake in KGB Logis Co. for 25.0 billion won, making it the industry’s fourth with a combined market share of over 10 percent.

Logen recorded 20.7 billion won in operating profit on sales of 263.5 billion won last year.

The combined earnings before interest, taxes, and amortization of the Logen and KGB Logis are estimated at 40 billion won for this year, up from last year’s around 30 billion won.

Related: UPS Adds Worldwide Express Service for 23 New Countries & Territories