Deal of the Year – Large Cap
(Equity commitment – $200 million and above)
Bandhan Mutual Funds (ChrysCapital Partners, GIC)
ChrysCapital Partners and GIC have teamed up with Bandhan Financial Holdings – an Indian banking and financial services company – to acquire IDFC’s asset management business for INR 45bn (USD 593m) in January 2023. This was the first buyout of a mutual fund business in India led by a private equity firm. Badhan Financial took a 60% stake in the company with ChrysCapital and GIC holding 20% apiece. Value creation initiatives include a rebranding, creating an equity mutual fund franchise to complement the existing debt mutual fund business, and building out the retail distribution network. The company has INR 1.15trn under management.
iNova Pharmaceuticals (TPG)
TPG completed the acquisition of a majority stake in Australia-based prescription medicines business iNova Pharmaceuticals for an enterprise value of AUD 2.2bn (USD 1.4bn) in October 2022. Pacific Equity Partners (PEP) and The Carlyle Group both exited, although PEP then re-invested – alongside TPG – through another fund. The deal was supported by a unitranche debt facility of approximately AUD 1bn. TPG contributed to a value creation plan intended to solidify iNova’s position as the only independent consumer healthcare company of scale in Asia Pacific. This led to an agreement to buy Mundipharma’s consumer healthcare portfolio for USD 540m in June 2023.
Osstem Implant (MBK Partners, UCK Partners)
MBK Partners and UCK Partners completed the acquisition of Osstem Implant, a Korean manufacturer of dental implants, for an enterprise value of KRW 3.64trn (USD 2.7bn) in August 2023. Working with the company’s chairman and largest shareholder – who agreed to exit half his position – they submitted a tender offer in January 2023. Osstem produces various dental implants, oral imaging equipment, orthodontic materials, oral health medicines, and dental clinic equipment. It is the world’s fourth-largest manufacturer of dental implants, with facilities in Korea and the US. It also trains more than 110,000 dentists globally each year.
Proterial (Bain Capital, Japan Industrial Partners, Japan Industrial Solutions)
A consortium led by Bain Capital and featuring Japan Industrial Partners and Japan Industrial Solutions, acquired Hitachi Metals in October 2022 at an equity valuation of JPY 817bn (USD 7.5bn when the deal was agreed). It is Japan’s second-largest private equity buyout. The consortium agreed to buy Hitachi’s 53.4% stake in Hitachi Metals and launched a tender offer to take out the other shareholders. The company was subsequently delisted and renamed Proterial. The buyers described the transition as an opportunity to drive transformation and growth – and make large investments – under a development plan that isn’t “constrained by Hitachi's portfolio strategy.”
SK Future Materials (Hahn & Company)
Hahn & Company completed the KRW 1.6trn (USD 1.3bn) carve-out of SK Future Materials, a Korea-based industrial materials business under SKC, in December 2022. Ten LP co-investors took part. It was the firm’s fifth acquisition of a business directly or indirectly owned by SK Group. The company – tentatively named SK Future Materials – is best known for manufacturing polyester (PET) films commonly used in screen coverings for electronic devices, in food and beverage packaging, in the windows of vehicles and buildings, and in multi-purpose printing. SKC said it would be better positioned to access new growth opportunities as an independent entity.