Four bidders, including Carlyle Group, CVC Capital, Hahn & Co. and a Kolmar Korea-led consortium, have been shortlisted to acquire CJ HealthCare, the pharmaceutical arm of CJ Group, according to news reports on Feb. 13.
Korean private equity firm Hahn & Co. reportedly made the highest bid worth 1.4 trillion won (US$1.29 billion), while other three offered more than 1 trillion won, each. CJ HealthCare had hoped to sell the firm for around 1.5 trillion won.
Hahn & Co. is pinning high hopes on CJ’s hangover cure drink business that could create synergies with Woongjin Foods, a beverage company it acquired in 2013. Managing more than 4 trillion won assets, the firm has purchased 14 firms, including large cement makers, for the past seven years.
Kolmar, the cosmetics contract manufacturer, has partnered with Mirae Asset Private Equity, H&Q Korea and Stic Investments for the deal. The sole strategic investor in the consortium aims to boost its research and development capability through the takeover.
Global private equity firms Carlyle and CVC that have actively participated in big deals in Korea recently are eyeing the firm’s growth potential by injecting more funds for production and R&D.
CJ HeathCare’s revenue comes mostly from intravenous solutions, including saline. It posted an operating income of 81.7 billion won and 513.7 billion won in sales last year.
By Park Han-na (firstname.lastname@example.org