Private equity fund (PEF) manager Centroid Partners will acquire funeral plan provider The People Life.
On the 6th, according to the investment banking (IB) industry, Centroid Partners recently took part in the main bid for the sale of The People Life led by Deloitte Anjin and was selected as the preferred bidder for a management control acquisition.
The acquisition target is about 80% of the management control equity held by related parties including Chief Executive Officer Cha Sung-gon of The People Life, and Centroid Partners has started due diligence for the acquisition. The transaction is expected to close in the second half of this year or later.
Centroid Partners is said to have pursued the acquisition of management control of The People Life, noting the senior economy's growth potential amid Korea's demographic shifts.
The People Life is cited as the No. 6 funeral plan provider in Korea with 500,000 contract accounts. As of the end of Apr., the size of advance receipts is understood to exceed 400 billion won.
After acquiring The People Life, Centroid Partners plans to build a total senior platform based on touchpoints with funeral plan members, expanding into estate organization and inheritance consulting.
It also plans to acquire additional small and midsize funeral plan companies. As a way to combine the existing management's operational know-how and network, Cha and others are expected to participate as junior investors even after selling their equity.
Meanwhile, at the start of this year, Hanwha Life Insurance was listed among Centroid Partners' major shareholders. As an investment to diversify its financial portfolio, Centroid Partners has since sped up its search for new investment destinations.