SK Rent-a-Car Plans $71M Auction House in Korea
Deal News | Jan 01, 2025 | Aim Group
SK Rent-a-Car, a South Korean car leasing company, is set to establish its first used-car auction house in Cheonan with an investment of $71 million. This project aims to streamline the disposal of used vehicles and boost sales and export synergies. The company was acquired by Affinity Equity Partners for $591 million in August last year, with Lee Jeong-Hwan appointed as CEO. In related private equity news, Affinity Equity Partners is also finalizing a $1.1 billion acquisition of a majority stake in Lotte Rental.
Sectors
- Automotive Leasing and Rentals
- Private Equity
- Automotive Auction and Sales
Geography
- South Korea – SK Rent-a-Car and Lotte Rental are South Korean companies, with SK Rent-a-Car setting up a facility in Cheonan.
- Hong Kong – Affinity Equity Partners, the private equity fund involved, is based in Hong Kong.
Industry
- Automotive Leasing and Rentals – SK Rent-a-Car operates in the car leasing sector, providing long-term and short-term rentals.
- Private Equity – Affinity Equity Partners' role in acquiring SK Rent-a-Car and their investment activities in mobility solutions demonstrate active involvement in the private equity sphere.
- Automotive Auction and Sales – The introduction of an auction house by SK Rent-a-Car categorizes this aspect of the article within the automotive auction industry.
Financials
- $71 million – Planned expenditure by SK Rent-a-Car on the new auction house.
- $591 million – Amount paid by Affinity Equity Partners to acquire SK Rent-a-Car.
- $1.1 billion – Agreed purchase price by Affinity Equity Partners for a majority stake in Lotte Rental.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SK Rent-a-Car | Target Company | Companies | A South Korea-based car leasing company planning a new used-car auction facility. |
| Affinity Equity Partners | Bidding Company | Companies | Hong Kong-based private equity firm that acquired SK Rent-a-Car and is investing in Lotte Rental. |
| Lee Jeong-Hwan | CEO | People | Appointed as CEO of SK Rent-a-Car after its acquisition by Affinity Equity Partners. |
| Lotte Rental | Other Company | Companies | A South Korean mobility provider soon to be acquired by Affinity Equity Partners. |
| Hahn & Company | Former Bidding Company | Companies | South Korean private equity firm that was in talks to acquire KCar before the deal fell through. |