JAPAN—Mitsui & Co., Ltd., a global trading and investment company, in collaboration with ROHTO Pharmaceutical Co., Ltd. and others, has finalized plans to acquire shares in Eu Yan Sang International Ltd (EYS) for approximately SG$800 million (US$594 million).
Founded in 1879, Eu Yan Sang is renowned as the largest traditional Chinese medicine chain in Southeast Asia and a prominent name in Hong Kong.
With over 170 stores and 30 Chinese herbal medicine clinics, primarily located in Malaysia, Hong Kong, and Singapore, Eu Yan Sang has cultivated a significant presence across 29 markets, boasting manufacturing capabilities in Malaysia and Hong Kong.
In recent years, Eu Yan Sang has diversified its offerings, with supplements and food products derived from natural ingredients now constituting about two-thirds of its total sales.
Notably, the company experienced a 16% revenue growth in the fiscal year ending June 2023, amounting to SG$297.3 million, while net profit surged by 26% to SG$18.7 million.
A special purpose company (“SPC”), jointly owned by Mitsui and Rohto, will acquire approximately 86% of EYS shares from Righteous Crane Holding Pte. Ltd., subject to a conditional sale and purchase agreement (“SPA”).
Following the fulfillment of the conditions outlined in the SPA, a takeover bid will be launched for the remaining 14% of EYS shares. As part of management retention arrangements, the founding family of EYS will reinvest partially in the SPC.
Mitsui, having previously invested in EYS through a fund in November 2022, will now divest its existing interest in EYS through fund holdings, subsequently reinvesting in EYS via the SPC.
If the SPC acquires 100% of EYS shares from RCH and under the takeover bid, Mitsui will hold an approximate 30% effective interest in EYS shares, with ROHTO holding around 60%, and the founding family holding approximately 10%.
Mitsui’s estimated net investment in EYS shares amounts to ¥15 billion, excluding proceeds from RCH’s sale of EYS shares. The acquisition is slated for completion on or around June 30, 2024.
Through its extensive and contemporary product portfolio, coupled with a commitment to continuous product innovation, Eu Yan Sang aims to empower customers with health and wellness solutions rooted in traditional Chinese medicine (TCM) wisdom.
Mitsui’s investment in EYS aligns with its strategic initiatives outlined in the Medium-term Management Plan 2026, specifically targeting “Wellness Ecosystem Creation.”
By providing healthcare, preventive care, solutions for pre-symptomatic conditions, and health-beneficial foods, Mitsui endeavors to enhance today’s diverse consumer lifestyles.
Additionally, ROHTO aims to foster well-being globally by delivering health through its products and services, guided by its business domain vision 2030, which emphasizes expansion and reinforcement of core business activities in OTC pharmaceuticals, skincare products, and other food items.
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