EQT Relaunches Ginko Sale for at Least $1 Billion

EQT Seeks Over $1 Billion in Ginko Relaunch

Private equity firm EQT is relaunching the sale of Ginko International's mainland China business, targeting a valuation of at least $1 billion. This move follows a previously failed deal with U.S. buyout firm Advent International in the prior year.

Overview of the Renewed Sale Process

Advisors Goldman Sachs and JPMorgan are now engaging potential buyers, including industry peers and financial sponsors. The previous agreement with Advent, which valued Ginko at over $1.1 billion, was terminated for undisclosed reasons, resulting in Advent paying a breakup fee.

Ginko, a Taiwan-founded company, specializes in contact lenses, with its primary market in mainland China. EQT acquired the business in 2022 through its merger with Baring Private Equity Asia.

Impact on the M&A Market

The revival of this high-value deal signals renewed activity in the Asian M&A landscape, particularly within the consumer healthcare sector. The outcome will be closely watched by investors as an indicator of market appetite for large-scale acquisitions in the region.

Looking Ahead

The success of this sale will depend on investor confidence and the valuation multiples accepted in the current market. Stakeholders are awaiting details on the first-round bidding deadline to gauge initial interest levels.

FAQ

Q: Who is selling Ginko International's China business?
A: Private equity firm EQT is selling the business.

Q: What is the target valuation for the sale?
A: The targeted valuation is at least $1 billion.

Q: Why is the sale being restarted?
A: A previous sale agreement with Advent International was terminated last year.

Source: Investing.com