Japan Trading & Investment Conglomerate Mitsui & Rohto Pharmaceutical Buy 86% of Singapore-Based Traditional Chinese Medicine Group Eu Yan Sang International at $593 Million Valuation from Righteous Crane Holding & Takeover Bid of Remaining 14% Shares, EYS Founding Family Will Reinvest Partially in New Group with 10% Shareholding, Mitsui Owns 30% & Rohto Pharmaceutical Owns 60%
5th April 2024 | Hong Kong
Japan trading & investment conglomerate Mitsui (Mitsui & Co.) & Japan Rohto Pharmaceutical have partner to buy 86% of Singapore-based traditional Chinese medicine group Eu Yan Sang International (EYS) at $593 million valuation (S$800 million) from Righteous Crane Holding (Eu Family, Tower Capital Asia & Temasek Holdings), and a takeover bid of the remaining 14% shares. EYS founding family will reinvest partially in the new group (special purpose vehicle) with 10% shareholding, Mitsui owns 30% & Rohto Pharmaceutical owns 60%. Mitsui: “Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Kenichi Hori) has decided to acquire shares in Eu Yan Sang International Ltd (“EYS”, Head Office: Singapore) jointly with ROHTO Pharmaceutical Co., Ltd. (“ROHTO”, Head Office: Ikuno-ku, Osaka, President and CEO: Masashi Sugimoto) and others. Based in Singapore, EYS manufactures and sells traditional Chinese medicines. A special purpose company (“SPC”), that is established in Singapore and will be jointly owned by Mitsui and Rohto, will acquire approximately 86% of the EYS shares from Righteous Crane Holding Pte. Ltd. (“RCH”, Head Office: Singapore), pursuant to a conditional sale and purchase agreement (“SPA”). Upon fulfillment of the condition in the SPA, a takeover bid for the remaining 14% of EYS shares will be executed and the founding family of EYS will reinvest partially into the SPC (as part of management retention arrangements). Mitsui invested in EYS through a fund in November 2022 as an indirect investor. The existing interest in EYS through its fund holdings will cease as a result of RCH’s sale of the EYS shares, and Mitsui will re-invest in EYS through the SPC, utilizing the proceeds from the above-mentioned sale. If the SPC is able to acquire 100% of the EYS shares from RCH and under the takeover bid, Mitsui will own approximately 30% effective interest in EYS shares, ROHTO approximately 60%, and the founding family approximately 10%. The acquisition of 100% of EYS shares is valued at approximately SGD800 million (approximately ¥88 billion), subject to adjustments. Mitsui will acquire shares worth an estimated ¥15 billion on a net basis, excluding the proceeds from the RCH’s sale of the EYS shares. Completion of the acquisition is targeted to take place on or around 30 June 2024.” EYS Profile – Eu Yan Sang, founded in 1879, is a leading integrative health and wellness company with a unique heritage in Traditional Chinese Medicine (“TCM”) that operates over 170 retail outlets and 30 clinics in its core Singapore, Hong Kong, and Malaysia markets. Eu Yan Sang also has a significant network across 29 markets, including manufacturing capabilities in Malaysia and Hong Kong. Through its comprehensive and modern product portfolio, combined with a strong emphasis on continuous product innovation, Eu Yan Sang seeks to empower customers to live their best quality of life by providing health and wellness solutions rooted in TCM wisdom.
“ Japan Trading & Investment Conglomerate Mitsui & Rohto Pharmaceutical Buy 86% of Singapore-Based Traditional Chinese Medicine Group Eu Yan Sang International at $593 Million Valuation from Righteous Crane Holding & Takeover Bid of Remaining 14% Shares, EYS Founding Family Will Reinvest Partially in New Group with 10% Shareholding, Mitsui Owns 30% & Rohto Pharmaceutical Owns 60% “
Japan Trading & Investment Conglomerate Mitsui & Rohto Pharmaceutical Buy 86% of Singapore-Based Traditional Chinese Medicine Group Eu Yan Sang International at $593 Million Valuation from Righteous Crane Holding & Takeover Bid of Remaining 14% Shares, EYS Founding Family Will Reinvest Partially in New Group with 10% Shareholding, Mitsui Owns 30% & Rohto Pharmaceutical Owns 60%
4th April 2024 – Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Kenichi Hori) has decided to acquire shares in Eu Yan Sang International Ltd (“EYS”, Head Office: Singapore) jointly with ROHTO Pharmaceutical Co., Ltd. (“ROHTO”, Head Office: Ikuno-ku, Osaka, President and CEO: Masashi Sugimoto) and others. Based in Singapore, EYS manufactures and sells traditional Chinese medicines.
A special purpose company (“SPC”), that is established in Singapore and will be jointly owned by Mitsui and Rohto, will acquire approximately 86% of the EYS shares from Righteous Crane Holding Pte. Ltd. (“RCH”, Head Office: Singapore), pursuant to a conditional sale and purchase agreement (“SPA”). Upon fulfillment of the condition in the SPA, a takeover bid for the remaining 14% of EYS shares will be executed and the founding family of EYS will reinvest partially into the SPC (as part of management retention arrangements). Mitsui invested in EYS through a fund in November 2022 as an indirect investor. The existing interest in EYS through its fund holdings will cease as a result of RCH’s sale of the EYS shares, and Mitsui will re-invest in EYS through the SPC, utilizing the proceeds from the above-mentioned sale. If the SPC is able to acquire 100% of the EYS shares from RCH and under the takeover bid, Mitsui will own approximately 30% effective interest in EYS shares, ROHTO approximately 60%, and the founding family approximately 10%. The acquisition of 100% of EYS shares is valued at approximately SGD800 million (approximately ¥88 billion), subject to adjustments. Mitsui will acquire shares worth an estimated ¥15 billion on a net basis, excluding the proceeds from the RCH’s sale of the EYS shares. Completion of the acquisition is targeted to take place on or around 30 June 2024.
Eu Yan Sang, founded in 1879, is a leading integrative health and wellness company with a unique heritage in Traditional Chinese Medicine (“TCM”) that operates over 170 retail outlets and 30 clinics in its core Singapore, Hong Kong, and Malaysia markets. Eu Yan Sang also has a significant network across 29 markets, including manufacturing capabilities in Malaysia and Hong Kong. Through its comprehensive and modern product portfolio, combined with a strong emphasis on continuous product innovation, Eu Yan Sang seeks to empower customers to live their best quality of life by providing health and wellness solutions rooted in TCM wisdom.
In 2018, Mitsui invested in Thorne HealthTech Inc., an American manufacturer and supplier of advanced functional supplements. Since then, Mitsui has worked to build a science-based, individualized solutions business for pre-symptomatic conditions. Mitsui invested in EYS through the fund and has since contributed to the expansion of EYS’ business by helping to enhance the value of the EYS brand and supporting the company’s 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 has identified “Wellness Ecosystem Creation” as one of its key strategic initiatives in the Medium-term Management Plan 2026. Through the provision of healthcare, preventive care, and solutions for pre-symptomatic conditions, as well as the supply of foods that offer health benefits, Mitsui will contribute to the qualitative enhancement of today’s increasingly diverse consumer lifestyles. Mitsui will continue to support the realization of richer and brighter lives by enhancing health and well-being through its contributions in the area of preventive care and solutions for pre-symptomatic conditions.
ROHTO’s corporate purpose is to lead all individuals and society to a state of well-being by delivering health to people around the world through its products and services. The development of its business in line with this purpose is guided by its business domain vision 2030, which calls for further expansion and reinforcement of its core business activities in the areas of OTC pharmaceuticals, skincare products, and other food items.
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