Eu Yan Sang International, a leading Singaporean traditional Chinese medicine (TCM) company with a rich 145-year history, is set to be acquired by a consortium of Japanese firms. Mitsui & Co and Rohto Pharmaceutical Co have agreed to purchase the company for S$800 million (US$594 million), according to a statement released by Mitsui yesterday.
The deal will see the Japanese giants acquire an 86% stake in Eu Yan Sang, with plans to launch a subsequent takeover bid for the remaining 14% of shares. This move confirms earlier reports by Bloomberg News suggesting a potential sale by Eu Yan Sang’s majority shareholders, which included mid-market private equity firm Tower Capital Asia, Temasek unit Blanca Investments, and members of the company’s founding family.
Interestingly, the founding family will have the opportunity to partially reinvest in a holding company established by Mitsui and Rohto. If the consortium achieves a full 100% acquisition, the final ownership structure would see Rohto holding a majority stake (around 60%), followed by Mitsui (30%), with the remaining 10% belonging to the Eu Yan Sang family.
Eu Yan Sang boasts a well-established presence across Asia, with a vast product portfolio of over 900 offerings. These include traditional remedies familiar to many, like bird’s nest for general health, Bak Foong pills for women’s health, and cough suppressant Hou Ning powder. The company also operates retail outlets in Singapore, China, Hong Kong, Macau, and Malaysia.
This acquisition marks a significant development in the TCM industry, with Eu Yan Sang poised to benefit from the expertise and resources of its new Japanese owners. The future holds promise for the brand’s continued growth and expansion in the regional healthcare landscape.
Image—The Edge Singapore
