Singapore traditional Chinese medicine (TCM) company Eu Yan Sang International Ltd (Eu Yan Sang) has been acquired for approximately S$695 million on Jun. 4, which will value the company at approximately S$808 million.

According to a media release by Singapore-based private equity firm Tower Capital Asia on Jun. 4, 86 per cent of the TCM company's shares have been jointly bought by Japan-based companies Rohto Pharmaceutical Co (Rohto Pharmaceutical) and Mitsui & Co (Mitsui).

Its sale was previously announced on Apr. 4 by investment holding company Righteous Crane Holding Pte Ltd (RCH).

The shareholders

Eu Yan Sang was founded in 1879 by Eu Kong, a Chinese migrant from Guangdong.

On Jul. 23, 1879, Eu opened the first shop named Yan Sang.

As a leading TCM company in the region, it boasts more than 170 retail outlets and 30 TCM clinics in Singapore, Hong Kong and Malaysia.

Eu Yan Sang also has a network across 29 other markets, including manufacturing in Malaysia and Hong Kong, according to the press release by Mitsui.

Its new shareholders are well-versed in multiple fields and industries.

Rohto Pharmaceutical, which specialises in over-the-counter drugs and skincare, also focuses on expanding its other businesses in medical ophthalmology, regenerative medicine, and contract pharmaceutical development and manufacturing.

Mitsui, a worldwide trading and investment company, is established in at least 60 countries covering a wide range of industries, such as energy, wellness, and food and retail management.

According to the offer announcement document dated Apr. 4 on the Eu Yan Sang website, Mitsui and Rohto aim to "jointly accelerate their efforts in the wellness sector with a strategic focus on Asia" through the acquisition.

"New shareholders will continue its legacy"

"RCH worked closely with the Eu Yan Sang leadership to institutionalise and strengthen the business while retaining a keen focus on consumer experience and brand identity," Tower Capital Asia said.

Its founder and CEO, Danny Koh, said: "Tower Capital Asia is proud to have played a pivotal role in Eu Yan Sang’s evolution and we are confident that the new shareholders will continue to nurture its legacy of innovation and success."

Eu Yan Sang chairman Richard Eu, said that Tower Capital Asia played an important role in "elevating the Eu Yan Sang brand" and helping to forge the company's next chapter.

"We are grateful for their years of partnership and look forward to continuing our journey with Rohto Pharmaceutical and Mitsui."

Top photos via Eu Yan Sang Singapore 余仁生新加坡/Facebook