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[Alpha Biz=(Chicago) Reporter Paul Lee] Geo-Young, Korea's No. 1 pharmaceutical wholesale company, has been put up for sale in the merger and acquisition (M&A) market. It has been more than four years since Blackstone, the world's largest private equity fund (PEF) operator, took over. The 'ransom' is expected to reach 2 trillion won.
According to the investment banking (IB) industry on the 5th, Blackstone sent a bid proposal (RFP) to a major adviser to select a host company to sell its stake in Geo-Young management.
The largest shareholder of Geo-Young is Chosun Hyeji Y Holdings (99.17%), a holding company. Blackstone owns about 71% of the holding company, while co-founders Cho Sun-hye and honorary chairman Lee Hee-koo hold 22% and 7%, respectively.
Geo-Young, which recorded sales of 2.9543 trillion won and operating profit of 51.4 billion won in 2019 when Blackstone was acquired, recorded sales of 3.7409 trillion won and operating profit of 72.1 billion won in 2020. Last year, it recorded sales of 4.2295 trillion won and operating profit of 76.1 billion won. In terms of annual sales, it is ranked No. 1 in the domestic pharmaceutical and bio industry.
Blackstone is said to want to sell from 1.8 trillion won to 2 trillion won in terms of total corporate value.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
