GS Retail-led consortium to buy Delivery Hero Korea
A consortium led by GS Retail will acquire a 100 percent stake in Delivery Hero Korea, operator of Korea’s second largest food delivery platform Yogiyo.
GS Retail, which runs the GS25 convenience store franchise, reported Friday that it has signed a deal to acquire a 100 percent share in Delivery Hero Korea in a consortium with investment firms Affinity Equity Partners and Permira.
The price was 800 billion won ($690 million), far lower than the 2 trillion won projected by a local investment bank.
GS Retail will invest 240 billion won, owning 30 percent of the company.
GS Retail said it decided to acquire Delivery Hero Korea due to Yogiyo’s high market share and growth, as well as the synergy effects that can be created with its online and offline businesses like quick commerce.
Quick commerce refers to fulfillment services able to deliver products within an hour.
German company Delivery Hero decided to sell its Korean unit following the Fair Trade Commission’s (FTC) conditional approval for its acquisition of Woowa Brothers, operator of Korea’s largest food delivery company Baedal Minjok.
The FTC approved Delivery Hero’s acquisition of Woowa Brothers on the condition that the Berlin-based company agreed to sell Delivery Hero Korea.
BY JIN MIN-JI [email@example.com]