US logistics giant UPS is seeking to reenter the Korean market by acquiring the nation’s fifth-largest package delivery firm Logen Logistics for 270 billion won (US$240 million), Korea Economic Daily reported on April 26.
UPS will be buying the entire stake in Logen from Hong Kong-based Baring Private Equity Asia that acquired it in 2013 from Mirae Asset Private Equity for 158 billion won.
UPS and Baring were not immediately available for comment.
When the deal is completed after due diligence, UPS will be reentering the Korean market 10 years after it sold off UPS-Korea Express, a joint venture set up with a local logistics company Korea Express, back in 2008.
According to sources, UPS had considered buying Logen last year but failed due to the high price of about 400 billion won at the time. The price has now been lowered after Logen recently sold its money-losing KGB Logistics to KG Logistics.
Logen currently owns about 7.3 percent share in the nation’s courier services market. Its EBITDA in 2016 is estimated at 30 billion won.
By Park Ga-young (firstname.lastname@example.org