This article was published on April 22, 2025, at 4:28 p.m. on the ChosunBiz MoneyMove website.
Domestic private equity fund (PEF) management firms Cactus Private Equity (PE) and Daishin Private Equity (PE) are weighing the timing of the sale of consumer goods rental company BSOn. Initially, the sale was to commence in 2023, about four years after the acquisition, and seemed to be gaining speed after changing the lead underwriter in mid-last year. However, due to political uncertainty caused by the early presidential election and stagnant revenue, the sale has currently been halted.
According to the investment banking (IB) industry on the 22nd, Cactus and Daishin PE are reviewing the timing for selling the management rights of BSOn. An industry official noted, “The sellers replaced the lead underwriter from Samil to Samjeong last year, but have yet to start the procedures,” and added, “If this year’s annual performance improvement trend is confirmed, they are likely to attempt to contact potential buyers.” The sale targets 84.9% of common and preferred stock held by the special purpose company (SPC) 'Daishin Cactus Buyout.'
Cactus PE selected Samil PWC as the lead underwriter for the sale and began the sale of BSOn's equity in September 2023. However, after experiencing a significant delay in finding a buyer due to differences in corporate value, they had to change the underwriter in mid-last year. The decision to halt the sale was ultimately made amid the martial law incident and declining performance.
The company was established by former representative Jeon Yong-woo, who served as the Korean representative of Macquarie Finance Korea in 2011. It operates a business model that plans various products such as electronics, furniture interior, bicycles, and pet supplies for rental through home shopping and online shopping malls. Cactus PE and Daishin PE acquired the management rights equity for 100 billion won in 2019, recognizing the growth potential of BSOn.
However, BSOn's performance has stagnated since the ownership change. After peaking with an operating profit of 16.4 billion won in 2019, the year it was sold, BSOn's profits fell to 12.9 billion won in 2020, 12.1 billion won in 2021, and 11.9 billion won in 2022. In 2023 and 2024, when the sellers released their equity for sale, they recorded 12.6 billion won and 12.1 billion won, respectively.
The sellers view the latter half of this year or the first half of next year as an appropriate time for the sale. As the Korean economy is expected to fall short of the anticipated growth rate and an economic recession is anticipated, there is analysis that the rental market will grow. The shift in consumer trends towards subscriptions rather than purchases is also becoming prominent.
Strategic investors (SI), who have shown interest in the rental industry, are expected to jump into the acquisition of BSOn. Rental companies that have only operated in specific markets such as water purifiers and electronics are said to consider acquiring BSOn as part of a bolt-on strategy. Unlike traditional rental companies, BSOn has handled over 14,000 products in recent years without limitations on the sales product range.
The industry is particularly optimistic about the potential participation of financial companies such as capital firms and savings banks. This is because they can make a profit from the interest rate gaps between the deposit rates and the loan rates obtained in the rental process. Since rental companies lend money by using their sales receivables as collateral to develop new products, a synergy can also be expected in terms of liquidity.
An IB industry official noted, “Despite the economic recession, electronics companies are performing well thanks to their rental businesses,” and added, “As WIINA AID, which was put up for sale due to corporate recovery, was recently acquired by a consortium of UAMCO and Hyundai Rental Care, the market is eyeing the expansion potential of the rental business.”