SINGAPORE: In a strategic move to expand their presence in Southeast Asia, Japan’s Rohto Pharmaceutical and Mitsui & Co have announced plans to acquire prominent Traditional Chinese Medicine (TCM) chain Eu Yan Sang for $800 million.
The acquisition, facilitated by a joint venture between the two companies, involves establishing a local special-purpose company to purchase 86 per cent of Eu Yan Sang’s equity.
The transaction is expected to be finalized on June 30. Rohto Pharmaceuticals is projected to own around 60 per cent of the shares, Mitsui & Co. will hold 30 per cent, and the Eu Yan Sang family will retain the remaining 10 per cent.
The acquisition aims to leverage Eu Yan Sang’s strong brand and reputation in Asia, combining it with Rohto Pharmaceuticals’ extensive research and development capabilities and marketing expertise.
This strategic integration aims to create a new and innovative healthcare business that will address the evolving needs of consumers across the region.
Eu Yan Sang, boasting a legacy of 144 years, operates 170 retail stores and 30 traditional Chinese medicine clinics in key markets such as Hong Kong, Singapore, and Malaysia.
With its widespread presence and longstanding heritage, Eu Yan Sang holds a prominent position in the TCM sector and is a trusted wellness solutions provider.
The acquisition represents a significant move for Rohto Pharmaceutical and Mitsui & Co. as they seek to strengthen their presence in the dynamic Southeast Asian healthcare market.
By harnessing Eu Yan Sang’s established network and market expertise, coupled with their own resources and capabilities, the joint venture aims to drive growth and innovation in the healthcare sector.
As the transaction progresses towards completion, stakeholders await the emergence of a dynamic healthcare entity poised to shape the industry’s future in Asia.