Homeplus Express to be up for grabs

[Courtesy of Homeplus]

South Korean private equity firm MBK Partners Ltd. has kicked off the sale of Homeplus Express, the super supermarket business unit of the country’s discount store chain Homeplus Co.

According to sources from the financial investment industry on Monday, MBK Partners recently appointed Morgan Stanley as the lead manager for the sale.

Morgan Stanley is expected to contact around 10 potential buyers this month, including Korean and foreign retail companies and e-commerce platforms.

Homeplus Express recorded sales of 1.2 trillion won ($870 million) in 2023, with an earnings before interest, taxes, and amortization (EBITA) margin of 8 percent.

Homeplus Express operates 413 stores nationwide, including 235 stores in Seoul and its surrounding area.

The immediate delivery service introduced three years ago has shown an average annual sales growth rate of 84 percent over the past two years, with the average transaction unit value in the mid-40,000 won range.

“Other retail companies in Korea are all affiliated with conglomerates, so there are limited opportunities for mergers and acquisitions in the market,” said an industry insider. “As an integrated on-and-offline omni-channel distributor, Homeplus Express is expected to attract market interest.”