Key Takeaways
- • EQT is relaunching a sale process for Ginko International, a mainland China-based contact lens manufacturer, targeting a valuation exceeding $1 billion after a prior deal with Advent International collapsed.
- • Goldman Sachs and JPMorgan are advising on the auction and are soliciting interest from both strategic buyers and financial sponsors, with timing for first-round bids still undetermined.
- • The failed Advent transaction, which reportedly valued Ginko at over $1.1 billion, resulted in a break fee payment but collapsed for undisclosed reasons, resetting the sale timeline.
- • Ginko manufactures conventional and disposable contact lenses plus care products, with principal operations in Danyang and Shanghai in mainland China, where it holds its largest market position.
- • EQT acquired the asset through its 2022 acquisition of Baring Private Equity Asia; the company was originally founded in Taiwan and maintains dual manufacturing facilities across both jurisdictions.
Summary
EQT, the Swedish private equity firm, is reviving its divestment of Ginko International, a contact lens manufacturer serving the mainland China market, after a transaction with Advent International fell through. The Swedish firm is targeting a valuation of at least $1 billion for the asset, according to Reuters reporting citing sources familiar with the matter.
The prior sale agreement with Advent International, which valued Ginko at more than $1.1 billion, terminated without public disclosure of the underlying reasons, though Advent reportedly paid a break fee to EQT. The collapse has now prompted EQT to restart its exit strategy with expanded advisory support and a broader buyer pool. Goldman Sachs and JPMorgan have been retained to manage the new sale process and are currently evaluating interest from both strategic acquirers and alternative investment sponsors. First-round bid timing remains uncertain at this stage.
Ginko International manufactures conventional and disposable contact lenses alongside lens care products, positioning mainland China as its primary revenue market. The company maintains operational headquarters in Danyang in eastern China's Jiangsu Province, with a sales and administrative hub in Shanghai and manufacturing capacity distributed between Danyang and Taiwan, reflecting its original Taiwanese founding. EQT obtained the asset through its 2022 acquisition of Baring Private Equity Asia, consolidating the contact lens business into its broader healthcare and life sciences portfolio.
The restarted sale process signals EQT's continued intention to exit the asset while navigating a competitive alternative investment landscape. The $1 billion-plus valuation target mirrors the previous failed transaction, suggesting management confidence in the underlying business fundamentals despite market headwinds that contributed to the Advent deal's termination.
The prior sale agreement with Advent International, which valued Ginko at more than $1.1 billion, terminated without public disclosure of the underlying reasons, though Advent reportedly paid a break fee to EQT. The collapse has now prompted EQT to restart its exit strategy with expanded advisory support and a broader buyer pool. Goldman Sachs and JPMorgan have been retained to manage the new sale process and are currently evaluating interest from both strategic acquirers and alternative investment sponsors. First-round bid timing remains uncertain at this stage.
Ginko International manufactures conventional and disposable contact lenses alongside lens care products, positioning mainland China as its primary revenue market. The company maintains operational headquarters in Danyang in eastern China's Jiangsu Province, with a sales and administrative hub in Shanghai and manufacturing capacity distributed between Danyang and Taiwan, reflecting its original Taiwanese founding. EQT obtained the asset through its 2022 acquisition of Baring Private Equity Asia, consolidating the contact lens business into its broader healthcare and life sciences portfolio.
The restarted sale process signals EQT's continued intention to exit the asset while navigating a competitive alternative investment landscape. The $1 billion-plus valuation target mirrors the previous failed transaction, suggesting management confidence in the underlying business fundamentals despite market headwinds that contributed to the Advent deal's termination.
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