CJ Group decided to sell a portion of CJ Olive Young, the number one health & beauty (H&B) store in Korea, to Glenwood PE, a private equity fund. CJ Group plans to speed up the reorganization of non-core affiliates starting with the sale of the stake.
![[단독] Shares in the owners of CJ Olive Young, sold to private equity](https://i0.wp.com/img.hankyung.com/photo/202012/AA.24807630.1.jpg?w=560&ssl=1)
According to the PEF and the acquisition finance industry on the 23rd, CJ Group and the sale supervisor, Credit Switzerland (CS), selected Glanwood PE as a target for the sale of some of their shares that are being promoted ahead of the listing of CJ Olive Young. On the 24th, the seller enters into a stock purchase agreement (SPA). Glanwood PE beat Hyundai Department Store, Goldman Sachs PIA, IMM PE, and Stick Investment, who participated in the bidding. The acquisition targets are some shares owned by the owner’s family, including CJ Group Chairman Lee Jae-hyun’s eldest son Lee Sun-ho (17.97%) and Lee’s younger brother, CJ Powercast CEO Lee Jae-hwan (10.03%). The total enterprise value is known to be in the late 1 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 the owner’s control. It is expected that Lee will purchase a stake in CJ Co., Ltd. to increase control over the entire group companies or to use it as an inheritance resource in the future. He owns 2.75% of CJ Co., Ltd. CJ Group is also expected to reorganize its business through mergers and acquisitions (M&A). Currently, CJ Foodville’s Tous Les Jours and CJ Logistics subsidiary CJ Rokin are being sold.
It is known that Glenwood PE highly evaluated the nationwide distribution network organization owned by CJ Olive Young. CJ Olive Young is the overwhelming No. 1 operator in the H&B industry with 50% market share in the first half of this year. The number of stores nationwide reached 1250 as of the end of last year. Glanwood PE has been interested in the distribution field by engaging in a close battle with Lotte Group in the acquisition of convenience store Ministop in 2018.
In this transaction, Glanwood PE is evaluated as showing a strong aspect in the Carbout (a division that is 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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