EQT Reopens Sale of Ginko's Mainland China Business, Seeking At Least $1 Billion

Private equity firm EQT has restarted the process to sell the mainland China operations of contact lens maker Ginko International, seeking a price tag of at least $1 billion. The move follows a previously agreed sale to Advent International that was terminated after the buyer paid a breakup fee and withdrew. EQT's advisers are reaching out to potential buyers, though timelines for bids remain unclear.

Key Points

EQT has relaunched the sale of Ginko International's mainland China business, targeting a valuation of at least $1 billion.
An earlier agreement to sell the business to Advent International fell apart after Advent paid a breakup fee and withdrew from the deal.
Goldman Sachs and JPMorgan are approaching potential buyers, including peer companies and financial sponsors, though the timetable for bids is unclear.

Stockholm-based private equity firm EQT has reopened the sale process for the mainland China unit of contact lens manufacturer Ginko International, with a target valuation of at least $1 billion, according to people familiar with the matter.

The decision to relaunch marketing for the business comes after an earlier deal agreed last year with U.S.-based buyout firm Advent International failed to complete. Two of the sources and two additional people said Advent ultimately opted to pay a breakup fee and abandon the transaction for reasons the parties did not make public.

At the time that sale was reported, media accounts indicated the transaction would have valued Ginko at over $1.1 billion. EQT has retained advisers Goldman Sachs and JPMorgan to approach prospective buyers for the mainland China operations, the sources said. Potential buyers being contacted include industry peers and financial sponsors, one source added. All of the people who provided these details requested anonymity because the information is confidential.

Two of the sources said it was not immediately clear when first-round bids would be due. EQT and the two banks did not provide comment when contacted. Advent and Ginko did not immediately respond to requests for comment.

Ginko was originally founded in Taiwan. Its product range includes conventional contact lenses, disposable contact lenses and lens care products, and the company lists mainland China as its principal sales market. Operational headquarters for the business are located in the southeastern Chinese city of Danyang, while sales headquarters are in Shanghai. The company also operates manufacturing facilities in both Danyang and Taiwan, according to information on its website.

The investment in Ginko was made in 2022 by Baring Private Equity Asia, which later that year merged with EQT. Beyond the restart of the sale process and the prior failed agreement with Advent, the sources did not disclose additional terms or timelines.

Sector impact: The restart of the sale process affects private equity activity and the consumer healthcare and eyewear manufacturing sectors focused on mainland China.

Risks

The previous buyer withdrew after paying a breakup fee, indicating a risk that future bidders could also pull out before closing - this affects private equity deal certainty.
Deadlines for initial bids have not been disclosed, creating uncertainty about the timing and pace of the sale process - this impacts strategic and financial buyers assessing allocation of capital.
Key parties including EQT, its advisers, Advent and Ginko declined or did not respond to comment, leaving open questions about motivations and deal terms that could influence transaction outcomes.

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