TPG and IMM PE Compete for Control of South Korean Regenerative Biomaterials Maker CGBio

How the deal came about

The divestment of CGBio has experienced multiple restarts over the course of 2026. Yoon Jae-seung initiated the sale of his family-controlled stake in early 2026 to monetize the specialized medical device maker. CGBio was founded in 2006 and focuses on spinal bone grafts, wound-care solutions, and tissue regeneration, according to ChosunBiz on July 6, 2026, and The Korea Economic Daily on October 8, 2026. Initial interest came from several global buyout groups. EQT Partners, CVC Capital Partners, KKR, and Macquarie Asset Management all reviewed the asset during the early phases of the auction, according to Seoul Economic Daily on July 17, 2026.

The seller selected IMM Private Equity as the initial preferred bidder in March 2026, according to NEWSTOP on March 6, 2026. The two parties entered exclusive negotiations, but those talks collapsed at the end of June 2026. The failure stemmed from disagreements over non-compete clauses barring Daewoong affiliates from competing in regenerative therapies, according to Maeil Business Newspaper on July 2, 2026. The seller wanted to preserve strategic flexibility for the broader Daewoong corporate umbrella, while the buyer required strict guarantees against future competition from the parent group.

Following the collapse of the IMM Private Equity agreement, the seller selected Boston-based TA Associates as the replacement preferred bidder, according to ChosunBiz on July 6, 2026. TA Associates conducted due diligence throughout the third quarter of the year. The firm’s exclusivity lapsed at the end of September 2026 after the two sides failed to reach a consensus on final transaction terms, according to The Korea Economic Daily on October 8, 2026. This expiration allowed both TPG Inc. and the previous preferred bidder IMM Private Equity to return to the negotiating table.

Valuation and comparable transactions

The seller seeks an enterprise valuation of approximately 1 trillion South Korean won, according to The Korea Economic Daily on October 8, 2026. CGBio generated revenue of 200.9 billion won and an operating profit of 6.5 billion won in 2024, according to Seoul Economic Daily on July 17, 2026. The company grew its revenue to 244.3 billion won and its operating profit to 31.7 billion won in 2025. Annual earnings before interest, taxes, depreciation, and amortization stood at 20.3 billion won in 2024 and surpassed 40 billion won in 2025, according to Maeil Business Newspaper on March 6, 2026.

Based on the 1 trillion won enterprise valuation and the 2025 EBITDA exceeding 40 billion won, the implied trailing enterprise value to EBITDA multiple is approximately 25 times. The official contractual transaction multiples are not disclosed, according to The Korea Economic Daily on October 8, 2026. Comparable transactions in the specialized Asian medical device and regenerative medicine sector are difficult to benchmark because CGBio operates as a standalone private entity. Private market valuations for profitable South Korean biomaterial manufacturers rarely reach 25 times trailing earnings unless the target possesses proprietary intellectual property with immediate global commercialization potential.

Transaction financing and equity structure

The transaction features a staggered equity transfer model. The buyer must execute an immediate acquisition of a 51 percent controlling stake held via the holding vehicle A-Hana/BlueNet, according to ChosunBiz on March 5, 2026. The parties pair this initial purchase with a conditional agreement to acquire an additional 28.1 percent equity stake at the same valuation once CGBio reaches 100 billion won in annual EBITDA, according to Maeil Business Newspaper on July 2, 2026. This framework bridges the valuation gap between the seller’s expectations and the buyer’s risk tolerance.

IMM Private Equity planned to draw its acquisition equity from its blind-pool buyout fund Rose Gold No. 5 during the initial negotiation phase, according to Maeil Business Newspaper on March 6, 2026. TPG Inc. has not disclosed its specific fund allocation or its proposed equity check, according to The Korea Economic Daily on October 8, 2026. Neither party has disclosed debt financing syndicates or leverage ratios for the proposed buyout. South Korean domestic banks typically provide senior term loans for middle-market buyouts, but the high multiple and conditional equity structure complicate traditional debt underwriting models.

Risks conditions and transaction timetable

• March 2026: Seller selects IMM Private Equity as the initial preferred bidder.
• June 2026: Exclusive negotiations with IMM Private Equity collapse over non-compete clauses.
• July 2026: Seller selects TA Associates as the second preferred bidder.
• September 30, 2026: Exclusivity period for TA Associates lapses without a signed definitive agreement.
• October 2026: TPG Inc. begins a fresh due diligence period.
• October 2026: Expected final decision between TPG Inc. and IMM Private Equity.

The seller is granting TPG Inc. a new window to conduct operational and financial audits, according to The Korea Economic Daily on October 8, 2026. IMM Private Equity benefits from six months of prior audit and legal review completed during its previous period of exclusivity, according to Seoul Economic Daily on July 17, 2026. The primary structural risk involves the definition and enforcement of non-compete clauses. Any successful buyer must ensure that Daewoong Group affiliates cannot launch rival spinal bone grafts or tissue regeneration products in the Asian market. The target’s lack of public filings means all financial metrics remain unaudited by public exchange regulators.

Where financial reports disagree

South Korean financial publications have published conflicting figures regarding the exact purchase price for the initial 51 percent controlling stake. Maeil Business Newspaper reported the price for the 51 percent stake at 516 billion won on July 2, 2026. Seoul Economic Daily on July 17, 2026, and The Korea Economic Daily on July 6, 2026, reported the price at 561 billion won. Earlier estimates broadly characterized the 51 percent tranche at approximately 600 billion won, according to ChosunBiz on March 5, 2026, and The Korea Herald on March 6, 2026.

Publications also differ on the United States dollar conversion of the target’s enterprise value due to historical foreign exchange fluctuations. The Korea Economic Daily and KED Global reported the 1 trillion won valuation as $746 million on October 8 and October 9, 2026, respectively. Earlier reports converted the same 1 trillion won valuation to $680 million, according to The Korea Herald on March 6, 2026, and to $694.4 million, according to NEWSTOP on March 6, 2026. Major Western wire services, including Bloomberg, Reuters, the Financial Times, and the Wall Street Journal, have not covered the deal or verified these figures.