Rohto Pharmaceutical, Mitsui & Co. to Acquire Chinese Medicine Firm Eu Yan Sang

Rohto Pharmaceutical and Mitsui & Co. plan to acquire Singapore-based Chinese herbal medicine company Eu Yan Sang International in a deal that values the company at 800 million Singapore dollars (US$593.5 million)

Rohto said Thursday that an entity funded by the company and Mitsui would acquire an 86% stake in Eu Yan Sang from Singapore-based Righteous Crane Holding and start a tender offer for the remaining 14% stake thereafter.

Following the transactions, Rohto plans to hold about 60% of the traditional Chinese medicine company, Mitsui would hold about 30% and the founding family of Eu Yan Sang about 10%, Rohto said.

Founded in 1879, Eu Yan Sang manufactures and sells traditional Chinese medicines, operating more than 170 stores and 30 herbal medicine clinics mainly in Singapore, Hong Kong and Malaysia.

Rohto said it aimed to realize an innovative health business by combining Eu Yan Sang's strong product portfolio and brand reputation in Asia with its research, development and sales capabilities.

Mitsui invested in Eu Yan Sang through a fund in November 2022. Upon the stake acquisition, the fund will be liquidated and Mitsui will re-invest in the Chinese herbal medicine company through the entity jointly funded by Rohto, the companies said.