Rohto Pharmaceutical and Mitsui & Co. have jointly announced their plan to acquire Eu Yan Sang International for approximately $594 million. This move not only signifies the Japanese firms’ commitment to diversifying their healthcare portfolios but also capitalizes on the increasing global demand for holistic and preventative medical practices, a trend accelerated by the recent global health crisis.
Eu Yan Sang, a household name in Southeast Asia and Hong Kong, stands as the largest traditional Chinese medicine chain in the region, boasting over 200 outlets and clinics. Its strong market presence and established brand reputation in key markets like Malaysia, Hong Kong, and Singapore offer Rohto and Mitsui a solid foundation to further penetrate and expand their reach in both Southeast Asia and Greater China.
The acquisition strategy, set to conclude by March 2025, involves a special purpose company through which Rohto will assume a 60% stake and Mitsui 30%, leaving the remainder with the Eu family, signifying not just a financial investment but a commitment to preserving the brand’s legacy and ethos.
Financially, Eu Yan Sang has shown robust growth with a 16% increase in revenue in the fiscal year ending June 2023, highlighting the brand’s strong performance and potential for further expansion. This acquisition aligns with Rohto’s diversification strategy and Mitsui’s ambition to enhance its healthcare portfolio in Asia, recognizing the traditional Chinese medicine market’s potential to reach $121.9 billion by 2027.
This strategic acquisition not only marks a significant step for Rohto and Mitsui in cementing their status in the traditional Chinese medicine market but also reflects a broader industry trend towards natural and preventative healthcare solutions, offering a promising outlook for the growth and global acceptance of traditional medicine practices.
