U.S. private equity firm CCMP Capital Advisors is trying to sell Jamieson Laboratories about two years after buying the Canadian vitamin maker, according to three sources familiar with the situation.
CCMP, which has hired investment banks Houlihan Lokey and Nomura to facilitate the sale, has received some approaches from potential buyers, said the sources, who spoke on condition of anonymity as the matter was not public.
Huge interest in health and wellness in Asia has fueled interest in the vitamins market, and Chinese players are looking to expand beyond their borders.
One source said Toronto-based Jamieson could go for a multiple of 12 to 14 times EBITDA, which would be roughly US$600 million to US$700 million. Jamieson was sold in 2014 for about US$300 million, which was a multiple of 10 times adjusted EBITDA, the source said.
Houlihan Lokey, which advised Jamieson on the previous sale to CCMP, and Nomura did not immediately respond to requests for comment. CCMP declined comment.
While interest in the asset is said to be strong, the talks are progressing slowly, two of the sources said.
The news of renewed interest in Jamieson was reported by the Wall Street Journal earlier on Monday.
Update: PE Hub Canada interviewed CCMP Managing Directors Joe Scharfenberger and Rich Zannino and Executive Adviser Doug Cahill about the Jamieson acquisition shortly after the deal’s close in early 2014.
(Reporting by Lauren Hirsch in New York, Denny Thomas in Hong Kong, John Tilak in Toronto; Editing by Cynthia Osterman)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Jamieson Laboratories