CVC Capital Partners (CVC) agreed to buy Logen Co., South Korean parcel delivery service company, from Baring Private Equity Asia (Baring Asia) at around 300 billion won ($270.8 million), more than doubled from what Baring Asia paid for the parcel company three years ago.

According to the investment banking industry Monday, Hong Kong-based private equity fund agreed to sell a 100 percent stake in Logen and a 75 percent stake in another Korean parcel firm KGB Logis Co. to U.K.-based CVC for about 300 billion won. The deal was initially valued at about 400 billion won, but with the sell-off, Baring Asia would be able to fetch more than twice of 158 billion won that it paid to acquire Logen from Mirae Asset Private Equity in 2013.

CVC and Baring Asia are expected to sign a stock purchase agreement Tuesday to conclude the deal.

Logen is Korea’s fourth-largest package delivery firm commanding a market share of 10 percent. It posted 25.8 billion won in operating profit on sales of 351.3 billion won last year. The company’s earnings are on the upswing thanks to booming e-commerce and online shopping in the country.

Baring Asia put Logen on sale early this year. Its preliminary bidding that kicked off in March drew multiple bidders including multinational logistics names including United Parcel Service of America, Inc. (UPS) and DHL International GmbH, but the sale fell through as all strong candidates withdrew their bids, leading Baring Asia to mull an initial public offering option for the courier service company. But the Hong Kong-based private equity fund embarked on the second sale attempt in July after CVC and Affinity Equity Partners came forward to buy Logen. Carlyle Group LP also joined the bid surfacing as the most probable buyer. However, CVC finally succeeded in acquiring of Logen after Carlyle and Bearing Asia failed to reach an agreement.

The deal marks CVC’s first buyout in Korea since it appointed Steve Lim - former CEO at J.P. Morgan Chase & Co. in Korea - as its partner and chairman of its Korean operation last August. He has built a reputation as “one of the top dealmakers” in Korea and in the Asia-Pacific region during more than 20 years of his career in the investment banking industry. Under his lead, CVC is also vying for Tongyang Magic Inc., which specializes in manufacturing and renting out kitchen appliances, put up for sale by Korea’s Glenwood Private Equity fund and NH Investment & Securities Co. The deal value is estimated at about 500 billion won.

By Kang Doo-soon and Kim Hyo-hye

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