Mitsui & Co., Ltd. (“Mitsui”), headquartered in Tokyo and led by President and CEO Kenichi Hori, has made the decision to acquire shares in Eu Yan Sang International Ltd (“EYS”), based in Singapore, in collaboration with ROHTO Pharmaceutical Co., Ltd. (“ROHTO”) and others. EYS specializes in the manufacture and sale of traditional Chinese medicines.
A special purpose company (“SPC”) will be established in Singapore, jointly owned by Mitsui and Rohto, to acquire approximately 86% of EYS shares from Righteous Crane Holding Pte. Ltd. (“RCH”) through a conditional sale and purchase agreement (“SPA”). Upon meeting the conditions outlined in the SPA, a takeover bid will be initiated for the remaining 14% of EYS shares. As part of management retention arrangements, the founding family of EYS will reinvest partially into the SPC. Mitsui’s initial investment in EYS through a fund in November 2022 will cease with RCH’s sale of the EYS shares, and Mitsui will reinvest in EYS through the SPC using the proceeds from the aforementioned sale.
If the SPC successfully acquires 100% of EYS shares, Mitsui will hold an approximately 30% effective interest in EYS shares, ROHTO approximately 60%, and the founding family approximately 10%. The total acquisition of EYS shares is valued at approximately SGD800 million (approximately ¥88 billion), subject to adjustments. Mitsui’s net investment in shares is estimated at ¥15 billion, excluding proceeds from RCH’s sale of EYS shares. The acquisition is expected to be completed around June 30, 2024.
Established in 1879, Eu Yan Sang is a prominent integrative health and wellness company with a rich heritage in Traditional Chinese Medicine (“TCM”). Operating over 170 retail outlets and 30 clinics in core markets such as Singapore, Hong Kong, and Malaysia, Eu Yan Sang also has a significant presence across 29 markets, including manufacturing capabilities in Malaysia and Hong Kong. With a focus on continuous product innovation and a modern product portfolio, Eu Yan Sang aims to empower customers to achieve their best quality of life by offering health and wellness solutions rooted in TCM wisdom.
Mitsui’s decision to reinvest in EYS, alongside ROHTO and the founding family, stems from its previous investment in the company through a fund and its efforts to contribute to EYS’s business expansion. Mitsui recognizes EYS’s strong business potential and aims to leverage its brand competitiveness, along with ROHTO’s R&D and marketing capabilities, to create innovative new business opportunities.
As part of its strategic initiatives outlined in the Medium-term Management Plan 2026, Mitsui has identified “Wellness Ecosystem Creation” as a key focus area. By providing healthcare, preventive care, and solutions for pre-symptomatic conditions, as well as offering health-beneficial foods, Mitsui aims to enhance the quality of diverse consumer lifestyles. Mitsui remains committed to supporting the realization of healthier and more fulfilling lives by promoting health and well-being through preventive care and solutions for pre-symptomatic conditions.