Private‑equity firm CVC Capital Partners has entered the final stage of negotiations to buy the mainland China business of Ginko International, a contact‑lens manufacturer owned by EQT. Four people familiar with the transaction told Reuters that the deal could value the business at between $700 million and $800 million, debt included.
Deal background and valuation
EQT, which acquired Ginko’s China operations through a 2022 merger with Baring Private Equity Asia, had previously set a minimum price target of $1 billion for the sale, according to earlier Reuters reporting. The current talks suggest a lower valuation range, reflecting market conditions and the specific assets involved.
Advisors and negotiation status
The sale process is being overseen by JPMorgan, which is acting as an adviser to EQT, and Goldman Sachs, advising CVC. Both EQT and JPMorgan declined to comment on the negotiations, while CVC and Goldman Sachs have not responded to requests for comment.
Sources emphasized that financial terms have not yet been finalized and could still change. They also warned that the talks might not result in a completed transaction.
Previous attempt to sell
Last year, EQT agreed to sell the China business to U.S. buyout firm Advent International, but that deal fell through, leaving the asset on the market for a new buyer.
About Ginko International
Ginko International, founded in Taiwan, produces both conventional and disposable contact lenses as well as lens‑care products. Its mainland China market is the company’s largest sales channel, according to information on its website.
Implications for the industry
If the transaction closes, CVC will add a significant Chinese consumer‑goods operation to its portfolio, potentially expanding its presence in the Asian eye‑care market. The acquisition could also signal continued investor confidence in China’s consumer health sector despite broader economic uncertainties.
Both parties are expected to continue discussions over the coming weeks, with a definitive agreement contingent on the resolution of remaining financial and regulatory details.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
