CVC Capital Partners has entered final-stage discussions to buy the mainland China operations of Ginko International, which are currently owned by private equity firm EQT, four people with knowledge of the matter said.
One of those sources said a transaction could value the business at between $700 million and $800 million on an enterprise basis, including debt. That figure contrasts with EQT's prior aspiration of obtaining at least $1 billion for the unit.
People familiar with the situation warned that financial terms have not been finalised and remain subject to change, and that the ongoing negotiations might not lead to a completed deal. The individuals declined to be named, citing the confidential nature of the discussions.
EQT and JPMorgan - which is serving as one of the advisers on the sale process - both declined to comment on the status of the talks. CVC and Goldman Sachs, another adviser to the sale process, did not respond to requests for comment.
The unit in question forms the mainland China business of Ginko International, a contact lens maker founded in Taiwan that produces conventional and disposable contact lenses as well as lens-care products. According to Ginko's corporate website, mainland China represents its largest sales market.
The business was part of an investment originally made in 2022 by Baring Private Equity Asia, which subsequently merged with EQT. EQT had agreed last year to divest the mainland China unit to U.S. buyout firm Advent International, but that previously announced sale did not close.
Context and implications
The discussions underscore ongoing buyer interest in China-focused consumer health assets, with private equity firms actively negotiating deal structures and valuations for assets that have strategic market positions in mainland China. The reported potential valuation range, the prior failed sale, and the involvement of prominent advisory banks highlight several moving parts that could shape any definitive agreement.
What remains uncertain - Parties directly involved have said that terms are not final, advisers either declined comment or did not respond, and a previously announced sale fell through, indicating execution risk. Any final price, structure, or timeline could change as talks proceed.