4-4-2024 (SINGAPORE) Mitsui & Co, a Japanese conglomerate, announced on Thursday its collaboration with Rohto Pharmaceutical Co to acquire Eu Yan Sang International, a Singapore-based traditional Chinese medicines firm, in a deal valued at S$800 million ($594 million).
According to Mitsui, a special purpose company jointly owned by Mitsui and Rohto will purchase approximately 86% of Eu Yan Sang from Righteous Crane Holding. Tower Capital Asia, a unit of Temasek Holdings, and the founding family members of Eu Yan Sang own Righteous Crane Holding, as stated in a separate announcement by Tower Capital Asia.
Upon completion of the deal, a takeover bid will be made for the remaining 14% of Eu Yan Sang, with partial reinvestment from the founding family into the Mitsui-Rohto special purpose company, Mitsui added.
Earlier reports from Reuters in January identified Mitsui and Hillhouse as the final contenders for the acquisition of Eu Yan Sang.
Established in 1879, Eu Yan Sang operates more than 170 retail outlets and 30 clinics across Singapore, Hong Kong, and Malaysia, as per Mitsui’s statement.
Righteous Crane Holding took Eu Yan Sang private from the Singapore bourse in 2016, valuing the company at approximately $196 million at the time.
Mitsui noted its indirect investment in Eu Yan Sang in November 2022, highlighting its contribution to the expansion of Eu Yan Sang’s business by enhancing the company’s brand and supporting its overseas growth.
The transaction is anticipated to be finalized by June, according to Tower Capital Asia.
Deutsche Bank and UBS are serving as financial advisers to Eu Yan Sang, with Wong Partnership providing legal counsel, according to the statement.
