How TPG aims to turn a $300m acquisition into a $2bn sale

Cocobella’s range includes coconut water.

TPG Capital has been testing buyer interest in Japan through its advisers for its consumer business Made Group, with talk in the market that the private equity firm has ambitions of selling the business that makes Cocobella drinks for $2bn.

Japanese buyers have a history of paying top dollar for Australian consumer companies, and market experts believe brands that resonate with customers can achieve strong earnings multiples, because cus­tomers will continue to pay up for them.

It comes as US private equity firm General Atlantic agreed to pay about $800m for the Lebanese fast food chain El Jannah ahead of the weekend with the company selling through Morgan Stanley.

Bank of America has been introducing Made to buyers on behalf of US-based private equity firm TPG, with a sale process expected to start in the new year.

TPG purchased 60 per cent from the interests of Coca-Cola in 2021 and the business is understood to be generating $550m in annual revenue and $110m in earnings before interest, tax, depreciation and amortisation.

The purchase was following the buyout of Australian-listed bottler Coca-Cola Amatil by its affiliate Coca-Cola European Partners for about $9.3bn.

The deal at the time valued Made Group at between $300m and $350m.

The company sits within the TPG Asia fund and after buying the operation, TPG has been moving to increase its scale, particularly within the Asia market.

Made Group manufactures and distributes a range of health and wellness-focused food and beverage products.