Centroid Investment Partners (Centroid PE), a Korean private equity fund manager, is set to acquire The People Life, a funeral services company.
Centroid PE said Tuesday that it has been selected as the preferred bidder in the main round of bidding for The People Life. Due diligence for the management buyout is currently underway, with the deal expected to close in the second half of the year or later. Deloitte Anjin is serving as the sale manager.
The People Life recorded prepaid deposits of 400 billion won ($290 million) as of the end of April this year. The company is considered the sixth-largest player in the industry, with a compound annual growth rate (CAGR) of around 24% over the past five years.
Through this transaction, Centroid PE will ramp up its investment in the senior industry. The funeral services business offers significant scalability into related sectors such as senior healthcare, nursing care, caregiving, and inheritance consulting, given its ability to maintain long-term customer relationships. The member database also enables relatively low customer acquisition costs (CAC).
Following the acquisition, Centroid is reviewing a bolt-on strategy that combines improving the investment returns on The People Life's prepaid deposits with acquisitions of small and mid-sized funeral services companies. The plan aims to expand market share and secure economies of scale. Earlier this year, Centroid entered the insurance market by bringing in Hanwha Life Insurance (088350.KS) as its second-largest shareholder.
Some existing management members are expected to remain involved after the deal through a subordinated equity stake. Industry observers say combining the existing management's operational experience with Centroid's investment and M&A capabilities could enhance stability during the post-merger integration (PMI) process.
