CVC in Final Talks to Acquire EQT's Ginko China Business for up to $800 Million, Sources Say

CVC Capital Partners is in the final stage of negotiations to acquire the mainland China business of contact lens manufacturer Ginko International from private equity firm EQT, according to four people with knowledge of the matter. The potential transaction could value the vision care unit at between $700 million and $800 million.

Deal Valuation and Terms

The proposed valuation, which includes debt, falls short of EQT's previously reported target of at least $1 billion for the asset. The sources, who requested anonymity because the information is confidential, cautioned that the financial terms are not yet finalized and the discussions may not result in a definitive agreement.

This marks the second attempt by EQT to divest the business. A prior deal to sell the unit to U.S. buyout firm Advent International, agreed upon last year, ultimately fell through.

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Asset and Transaction Background

Ginko International, which was founded in Taiwan, manufactures a range of products including conventional and disposable contact lenses as well as lens-care solutions. The company's website identifies mainland China as its largest sales market, making this a significant strategic asset in the regional consumer healthcare sector.

EQT's ownership of the Ginko stake stems from its merger with Baring Private Equity Asia, which made the original investment in the company in 2022. According to the Reuters report, JPMorgan and Goldman Sachs are advising on the sale process. EQT and JPMorgan declined to comment, while CVC and Goldman Sachs did not respond to requests for comment.