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CVC in final talks to buy EQT's Ginko China business
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CVC Capital Partners is in final negotiations to acquire the mainland China operations of contact lens maker Ginko International from EQT, according to four sources with direct knowledge. The deal values the business at $700 million to $800 million including debt, one source said, lower than the at least $1 billion EQT had previously sought. The sources cautioned that financial terms are not finalized and could change, and the talks may not result in a deal. EQT and JPMorgan, an adviser on the sale, declined to comment, while CVC and Goldman Sachs, another adviser, did not respond to requests for comment. EQT had agreed last year to sell the business to Advent International, but that deal fell through. Ginko, founded in Taiwan, makes traditional and disposable contact lenses and lens care products, with mainland China as its largest sales market. The Ginko investment was completed in 2022 by Baring Private Equity Asia, which later merged with EQT.
Source report
HONG KONG, Sept 11 (Reuters) — CVC Capital Partners is in final negotiations to acquire the mainland China operations of contact lens maker Ginko International, which is owned by EQT, according to four people with direct knowledge of the matter.
Deal Value
The deal values the business at between $700 million and $800 million, including debt, one source said. Reuters previously reported that EQT was seeking at least $1 billion.
Status of Negotiations
- Financial terms are not yet finalized and could change.
- The talks may not result in a deal, the sources said, speaking on condition of anonymity as the information is confidential.
Advisers and Responses
- EQT and JPMorgan, one of the advisers on the sale process, declined to comment.
- CVC and Goldman Sachs, another adviser, did not respond to requests for comment.
Background
EQT agreed last year to sell the business to U.S. buyout firm Advent International, but that deal fell through.
About Ginko
Founded in Taiwan, Ginko manufactures traditional and disposable contact lenses as well as lens care products. According to its website, mainland China is its largest sales market.
The Ginko investment was completed in 2022 by Baring Private Equity Asia, which later merged with EQT.
Reporting by Kane Wu and Yantoultra Ngui; Editing by Alexander Smith
Source: Reuters
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