Many Malaysians would be familiar with the healthcare chain Eu Yan Sang, as the traditional Chinese medicine (TCM) retailer has been in Malaysia since 1879. Recently, business news outlets have reported that the company is being sold to an entity funded by Japanese companies Rohto Pharmaceuticals and Mitsui & Co.
In a statement released on 4th April (Thursday), Mitsui & Co. announced that the two companies formed a ‘special purpose company’ (SPC) in Singapore to acquire Eu Yan Sang’s shares from its investment holding company, Righteous Crane Holding (RCH). RCH is owned by a Tower Capital Asia fund, a unit of Singapore’s Temasek Holdings and certain members of the Eu Yan Sang founding family. According to The Business Times, the deal values 100% of Eu Yan Sang at about S$800 million (approximately RM2.8 billion).
However, the SPC will acquire only an 86% stake and start a tender offer for the remaining 14% from the founding family. The 86% stake reportedly cost Rohto-Mitsui a whopping S$687 million (RM2.4 billion) and was paid in cash. If the SPC manages to acquire 100% of the healthcare company, Rohto plans to hold about 60% of the stakes, while Mitsui would own about 30%. The founding family of Eu Yan Sang will hold the remaining 10% to provide guidance. The acquisition should be complete by the end of June 2024.
Mitsui has shared that the company had invested in the TCM retailer through a fund in 2022. Through this, the company reconfirmed Eu Yan Sang’s strong business potential, leading to a re-investment in the retailer with Rohto. The two Japanese companies aim to create an innovative health business by combining Eu Yan Sang’s branding portfolio with Rohto’s research, development and sales capabilities.
For those curious, Rohto Pharmaceuticals is the multinational pharmaceutical corporation behind popular brands like SunPlay, Mentholatum and Rohto Eyedrops. Meanwhile, Mitsui & Co. is one of Japan’s largest trading companies and is part of the Mitsui Group.
Sources: Mitsui & Co., Morningstar, The Business Times
