Blackstone to Sell Majority Stake in Geo-Young’s Logistics Center in South Korea

Private equity giant Blackstone Inc. is making waves in South Korea with its planned exit from the country through the sale of a majority stake in Geo-Young Corp., the largest medicine wholesaler in the nation. The deal, valued at over $1 billion, will see Asian buyout firm MBK Partners take control of the holding firm Cho Sunhae GY Holdings Co., which owns 100% of Geo-Young.

Geo-Young, founded in 2002 by former pharmacist Cho Sun-hae and ex-sales manager Lee Hee-koo, has seen significant growth over the years through strategic acquisitions and investments. Blackstone’s acquisition of the stake in 2019 has proven to be a successful move, with the holding company’s value nearly doubling since then.

The sale is expected to bring a substantial return to Blackstone and is set to be one of the largest transactions in Korea’s merger and acquisition market this year. Market watchers anticipate that this deal will pave the way for more large M&A activities in the coming months.

Geo-Young’s success can be attributed to its expansion efforts, including the establishment of Korea’s first regional logistics center by a medicine wholesaler and the acquisition of industry rivals. The company has also diversified its business through third-party and fourth-party logistics services, catering to the growing demand for high-value medical products.

With Geo-Young surpassing 3 trillion won in revenue last year, the company has solidified its position as a key player in the Korean pharmaceutical industry. The partnership between MBK Partners and Cho Sun-hae is expected to further drive the company’s growth and success in the future.

For more information, contact Jong-Kwan Park at pjk@hankyung.com. Jihyun Kim edited this article.