Permira, CVC Capital Partners, Advantage Partners and Goldman Sachs are all considering a bid for Japanese food supplement company Everlife, which is currently owned by CLSA Capital Partners, Reuters reported. The first round of bids will close at the end of January, according to CLSA, and the deal could reach between 50 billion to 70 billion yen ($606 million to $848 million), Reuters said.
(Reuters) – Permira [PERM.UL], CVC Capital Partners [CVC.UL], Advantage Partners and Goldman Sachs (GS.N) are considering submitting bids to buy Japanese food supplement maker Everlife from CLSA Capital Partners, five people familiar with the transaction said.
CLSA Capital Partners, a private equity arm of Credit Agricole SA (CAGR.PA), has started a sale process and the first round of bids will close on Jan. 31, the people said.
The deal could be worth 50-70 billion yen ($606-848 million), they said.
Everlife could be worth five to seven times its EBITDA, or earnings before interest, tax, depreciation and amortisation, which is 10 billion yen, sources had told Reuters previously.
Everlife’s flagship product is a hyaluronic acid food supplement called Kojun targeted at senior citizens.
The product helped drive the company’s earnings but potential investors are concerned about Everlife’s heavy reliance on Kojun and the success of the bid would be determined by the price the seller would accept, the sources said.
Everlife’s net profit rose 83 percent to 2.76 billion yen in the year ended March 2010, according to Japanese thinktank Teikoku Data Bank. Sales rose 23 percent to 26.4 billion yen in the same period, according to Teikoku.
Everlife does not disclose financial data.
The people spoke on condition of anonymity because the process is not public.
CLSA Capital Partners, Permira, CVC Capital, Goldman Sachs and Advantage Partners declined to comment.
Bank of America Merrill Lynch (BAC.N) is advising CLSA Capital on the sale.
CLSA Capital had initially planned to take Everlife public and hired Daiwa Securities Capital Markets, the investment unit of Daiwa Securities Group Inc (8601.T), as an underwriter, but it cancelled the IPO plans, sources had told Reuters previously.