Blackstone to Acquire 46% Stake in South Korea's Leading Pharmaceutical Distributor Geo-Young for $945 Million

Recently, VCBeat (WeChat official account: vcbeat) learned that the U.S.-headquartered Blackstone Group has agreed to acquire Geo-Young, a South Korean wholesale pharmaceutical distributor, and has reached an agreement with the company’s founder. Blackstone’s private equity fund has agreed to purchase a 46% stake in Geo-Young from another private equity firm, Anchor Equity Partners, for KRW 1.1 trillion (USD 945.2 million).

Anchor Equity Partners decided three months ago to sell its stake in Geo-Young. The transaction is expected to be completed in the second quarter of 2019, subject to regulatory approval. In a statement, Blackstone indicated that Cho Sun-hae, founder and CEO of Geo-Young, will remain a shareholder and retain her leadership role.

Geo-Young Co., Ltd. was established on August 1, 2002. With business operations spanning pharmaceutical distribution, pharmaceutical logistics, and new business development, it is the largest distributor of pharmaceuticals and medical devices in South Korea. Geo-Young serves more than 250 multinational and domestic pharmaceutical and medical device companies. Currently, it supplies retail pharmaceuticals to approximately 14,000 pharmacies and 50 major hospitals across South Korea, accounting for about 70% of the country’s pharmaceutical retail market share.

Ed Huang, Senior Managing Director at Blackstone, stated, “We are delighted to announce our new partnership with Chairwoman Cho and Geo-Young’s high-quality management team. Under Ms. Cho’s leadership, Geo-Young has become a leading healthcare distribution platform in the South Korean market, boasting nationwide logistics and supply capabilities along with differentiated service offerings. We are excited to forge a close collaborative relationship with Ms. Cho and her team, and we look forward to leveraging our global resources and expertise in healthcare and distribution to support Geo-Young’s continued growth and market leadership.”

Cho Sun-Hae, Founder, Chairperson, and CEO of Geo-Young, stated, “We are pleased to announce our new partnership with Blackstone. We warmly welcome our new shareholder, Blackstone, and have high expectations for their support in further enhancing the company’s development and capabilities. Through this collaboration, Geo-Young will continue to provide first-class value-added services to its customers, ultimately contributing to the well-being of healthcare patients and society.”

Blackstone (NYSE: BX) is one of the world’s leading investment firms. The company is committed to creating positive economic impact and long-term value for its investors, portfolio companies, and the communities in which it operates, leveraging its professionals and flexible capital to help other companies solve problems. Blackstone manages $512 billion in assets globally, spanning private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds.

Anchor Equity Partners, established in August 2012, is a private equity firm specializing in middle-market and consolidation investments. Headquartered in Hong Kong with an office in South Korea, the firm focuses on investing in companies with project values exceeding USD 50 million.

(Compiled by Song Chenchen)