Sources indicate that Blackstone is close to finalizing a deal to sell a South Korean pharmaceutical wholesaler to MBK Partners

Blackstone Inc, a private equity firm, is in the final stages of selling its controlling stake in South Korean wholesale drug distributor Geo-Young to North Asian buyout fund MBK Partners for over $1 billion. The deal is expected to be finalized soon, according to sources close to the negotiations. However, the terms are still subject to change, the sources cautioned.

Blackstone’s acquisition of Geo-Young took place in 2019 when the buyout firm, along with the company’s founders, purchased the wholesale drug distributor for an undisclosed amount. At that time, Geo-Young was valued at around 1.1 trillion won ($797 million). Founded in 2002 by chairwoman and chief executive Cho Sun-Hae, Geo-Young has since become the largest wholesale pharmaceutical and medical device distributor in South Korea.

The sale of Geo-Young would mark Blackstone’s first major exit in the South Korean market, where it established a locally-based team two years ago. With over 250 multinational and domestic pharmaceutical and medical device companies on its client roster, Geo-Young distributes to more than 11,000 pharmacies, hospitals, and clinics through its nationwide logistics network.

Representatives from Blackstone, MBK, and Geo-Young have declined to comment on the potential deal. The transaction is part of Blackstone’s strategic move in the Asian market and highlights the growing interest of North Asian buyout funds in the healthcare sector. Stay tuned for further updates on this developing story.