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CJ Group decided to sell a part of CJ Olive Young, the number one health and beauty store (H&B) in Korea, to Glenwood PE, a private equity fund (PEF). CJ Group plans to accelerate the reorganization of the secondary subsidiaries beginning with the sale of its stake.
According to the PEF and the acquisition finance industry on the 23rd, CJ Group and sales supervisor, Credit Switzerland (CS), selected Glanwood PE as a target for the sale of some of its shares that are being promoted before listing. by CJ Olive Young. On the 24th, the seller signs a share purchase agreement (SPA). Glanwood PE beat out Hyundai Department Store, Goldman Sachs PIA, IMM PE and Stick Investment, which participated in the tender. The acquisition targets are some shares owned by the owner’s family, including the eldest son of CJ Group Chairman Lee Jae-hyun, Lee Sun-ho (17.97%) and Lee’s younger brother, the CEO of CJ Powercast, Lee Jaehwan (10.03%). The total value of the company is known to be in the late trillion won range. CJ Olive Young is promoting listing on the stock market in 2022.
CJ Group is expected to use the proceeds from the sale to strengthen owner control. Lee is expected to purchase a stake in CJ Co., Ltd. to increase control over all group companies or to use it as an inheritance resource in the future. It owns 2.75% of CJ Co., Ltd. CJ Group is also expected to reorganize its business through mergers and acquisitions (M&A). Currently, Tous Les Jours by CJ Foodville and CJ Rokin, a subsidiary of CJ Logistics, are being sold.
Glenwood PE is known to highly evaluate the organization of the national distribution network owned by CJ Olive Young. CJ Olive Young is the overwhelming number one operator in the H&B industry with a 50% market share in the first half of this year. At the end of last year, the number of stores nationwide reached 1,250. Glanwood PE has taken an interest in the field of distribution by engaging in a close battle with Lotte Group in the acquisition of the Ministop store in 2018.
In this transaction, Glanwood PE is assessed as showing a strong side in Carbout (a division that is a spin-off from a large company). Glanwood PE won transactions such as Halla Cement, Tong Yang Magic and PI Advanced Materials (formerly SKC Kolon PI).
Reporter Kim Chae-yeon [email protected]
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