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Japan’s trading and investment company Mitsui & Co announced yesterday (April 4) that they have joined hands with Rohto Pharmaceutical Co to buy Eu Yan Sang International in a deal valuing the brand at S$800 million (US$594 million).
According to a press release, Mitsui & Co stated that a special purpose company jointly owned by Mitsui and Rohto would acquire around 86 per cent of Eu Yan Sang from investment firm Righteous Crane Holding.
The Japanese investment firm also added that a takeover bid for the remaining 14 per cent of the homegrown Traditional Chinese Medicine (TCM) brand will be made.
In a separate statement issued yesterday, Righteous Crane Holding is owned by a fund managed by Tower Capital Asia, a unit of Temasek Holdings and founding family members of Eu Yan Sang, who will also reinvest partially into the Misui-Rohto special purpose company following the deal.
In their statement, Mitsui & Co shared that the acquisition is expected to be completed by 30 June 2024. Deutsche Bank and UBS will also be acting as financial advisers to Eu Yan Sang, with WongPartnership as the legal counsel.
The acquisition aims to spur greater growth for Eu Yan Sang
Eu Yan Sang first opened as a medicinal hall in 1879. Since then, it has grown to be a mainstay TCM brand, operating over 170 retail outlets and 30 clinics in Singapore, Hong Kong, and Malaysia.
Prior to the announcement, Mitsui & Co. indirectly invested in Eu Yan Sang in November 2022, which helped to increase the brand’s value and spur overseas expansion.
Through these activities, Mitsui reconfirmed EYS’s strong business potential and how Mitsui could contribute to its business expansion, which led to Mitsui’s decision to re-invest in EYS with ROHTO and the founding family through the SPC.
Leveraging the competitiveness of EYS’ brand and products in Asia and ROHTO’s R&D and marketing capabilities, Mitsui will work to create an innovative new business.
Mitsui & Co in a press release dated 4 April 2024
Righteous Crane Holding took the company private after the brand was delisted from the Singapore Stock Exchange in 2016. The deal valued the brand at about US$196 million at the time.
In January, Reuters reported that Mitsui and Hillhouse had emerged as the final bidders for Eu Yan Sang for a deal valued at US$700 million, according to sources.
Featured Image Credit: Eu Yan Sang
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