Godo Partners’ First Buyout Likely to Be Children’s Platform Elysia [fn Market Watch]

[Financial News] Private equity firm Godo Partners is pursuing the acquisition of Elysia, a platform specializing in products for babies and children. After entering the bidding for beverage company Haitai HTB, it has also moved to secure distribution channels.
According to investment banking (IB) industry sources on the 10th, Godo Partners is considering acquiring Elysia, which is owned by foreign private equity firm Withus Partners. The two sides are negotiating the sale price and specific terms following due diligence. An SPA is expected to be signed this month. The market estimates the transaction value at somewhere from the high ₩100 billions to around ₩200 billion.
Elysia is a platform assembled by Withus Partners, which acquired three infant-products companies, including Petite Elin, Essenlu and Dudu Story, for ₩100 billion in 2021. It has built a portfolio of its own brands, including baby-bottle brand Moyuum, and expanded its scale by bringing brands onto the platform. Revenue last year was ₩114.1 billion, up at least 16% from ₩97.7 billion in 2021. EBITDA is expected to be around ₩20 billion.
Godo Partners is reportedly considering the acquisition of Elysia with overseas expansion in mind. Elysia currently exports to 12 countries and ranks No. 1 in sales of baby-feeding products in Vietnam and Taiwan.
Godo Partners is a newly established private equity firm co-founded by CEO Lee Jin-ha, formerly of MBK Partners, and CEO Lee Jeong-woo, formerly of Bain Capital. It is currently seeking to raise a fund of about ₩700 billion from global limited partners (LPs). Godo Partners is taking part in the final bidding for Haitai HTB, competing with MGC Global Co., Ltd., the operator of Mega MGC Coffee. With the SPA for Haitai HTB expected to be signed early next year, some expect Elysia could become Godo Partners’ first portfolio investment.
If the deal goes through, Withus Partners will be able to recoup its investment about five years after acquiring Elysia in 2021. Withus Partners is a cross-border private equity firm with offices in Seoul, Hong Kong and Singapore that has invested in legal platform Law Talk, among others.
Meanwhile, the IB industry is paying attention to the fact that the newly established firm has targeted a consumer-goods platform for its first investment. One private equity industry source said, “A first portfolio investment is significant because it shows the firm’s investment strategy and the direction of its future fundraising,” adding, “Elysia’s expansion of overseas distribution networks and stronger brand competitiveness, rather than the domestic market, will determine its corporate value going forward.”

[email protected] Kang Gu-gwi Reporter