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CJ CheilJedang Headquarters Building (Photo = CJ) |
[Alpha Biz= Kim Jisun] MBK Partners, once considered the leading contender to acquire CJ CheilJedang’s Green Bio business unit, ultimately decided not to participate in the final bidding process. The private equity firm reportedly deemed the expected acquisition price too high.
According to the investment banking (IB) industry on Thursday, MBK Partners did not submit a final bid for the sale, which closed the previous day. Despite having ample financial resources, the firm found the estimated valuation excessive.
Initially, global private equity firms such as Blackstone, Carlyle, KKR, and TPG were mentioned as potential bidders. However, they all opted out, leaving only two Chinese companies—Guangxin Group and Meihua Group—to proceed with their bids.
CJ CheilJedang’s Bio division primarily focuses on the Green Bio business, which produces food seasoning ingredients and animal feed amino acids using microorganisms. Since establishing a production base in Indonesia in 1988, the company has grown to secure the world’s top market share in feed amino acids such as lysine and tryptophan.
As of last year, the business recorded sales of KRW 4.2 trillion (approximately USD 3.2 billion) and an operating profit of KRW 337.6 billion (approximately USD 258 million), with EBITDA exceeding KRW 700 billion (approximately USD 534 million). The expected sale price was estimated to be around KRW 6 trillion (approximately USD 4.6 billion).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
