Mitsui Buys out Eu Sang International at $594 Million

The acquisition of Eu Yan Sang International by Mitsui & Co, in partnership with Rohto Pharmaceutical Co, marks a significant move in the traditional Chinese medicines (TCM) industry. The deal, valued at S$800 million (US$594 million), reflects Mitsui's and Rohto's strategic vision for expanding their presence in the TCM market.

A special purpose company jointly owned by Mitsui and Rohto will acquire approximately 86 per cent of Eu Yan Sang from Righteous Crane Holding, a holding company owned by a fund managed by Tower Capital Asia, a unit of Temasek Holdings, and founding family members of Eu Yan Sang. Following the acquisition, a takeover bid will be made for the remaining 14 per cent of Eu Yan Sang.

Founded in 1879, Eu Yan Sang operates a significant network of retail outlets and clinics across Singapore, Hong Kong, and Malaysia. The company's long history and strong presence in the TCM sector make it an attractive investment opportunity for Mitsui and Rohto.

Mitsui's previous indirect investment in Eu Yan Sang in November 2022, along with its efforts to support the company's brand enhancement and overseas expansion, reaffirmed the strong business potential of Eu Yan Sang. This led to Mitsui's decision to reinvest in the company alongside Rohto and the founding family.

The transaction is expected to close by June, indicating a swift progression towards the finalization of the deal. Financial advisers Deutsche Bank and UBS, along with legal counsel WongPartnership, are facilitating the acquisition process for Eu Yan Sang.

Overall, the acquisition underscores Mitsui's and Rohto's commitment to investing in the TCM sector and leveraging Eu Yan Sang's established platform to further expand their presence in the market.