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DKSH transfers healthcare business in China and increases strategic focus 2018-07-10


DKSH transfers healthcare business in China and increases strategic focus

For many years, DKSH has pursued a niche strategy in the Chinese healthcare market. DKSH now announced an agreement to transfer this business to Warburg Pincus. The transaction emphasizes DKSH’s increased strategic focus, realizing the value created over the years. DKSH continues to be present with its Consumer Goods, Performance Materials and Technology businesses in China.

Media release

DKSH transfers healthcare business in China and increases strategic focus

For many years, DKSH has pursued a niche strategy in the Chinese healthcare market. DKSH now announced an agreement to transfer this business to Warburg Pincus. The transaction emphasizes DKSH’s increased strategic focus, realizing the value created over the years. DKSH continues to be present with its Consumer Goods, Performance Materials and Technology businesses in China.

Zurich, Switzerland, July 10, 2018 – DKSH, the leading Market Expansion Services provider with a focus on Asia, today announced an agreement to transfer its Healthcare business in China to Warburg Pincus.

 

The transfer of the healthcare business emphasizes the increased strategic focus of DKSH. The company has pursued a niche strategy in the Chinese healthcare market for many years. Reviewing its portfolio on a regular basis, DKSH has identified Warburg Pincus as the ideal new owner. Their scale and experience allows them to further take advantage of the potential in the business.

 

The transaction includes DKSH’s pharma, consumer health and medical device businesses. Already in 2015, DKSH transferred two own pharmaceutical brands, Combizym and Hirudoid, to the Chinese pharma distributor CMS. DKSH continues to be present in China with Business Units Consumer Goods, Performance Materials and Technology.

 

Closing of the transaction is expected for the second half-year of 2018 and is subject to certain conditions and regulatory approvals. Assuming constant exchange rates, net sales related to the transaction were over CHF 300 million in 2017 and the purchase price is expected to be approximately CHF 100 million.

 

Stefan P. Butz, CEO of DKSH says: “The transfer emphasizes our increased strategic focus and China historically has been a niche market for our healthcare business. Expanding the market requires significant scale. We are pleased to transfer the business to Warburg Pincus for further expansion. We would like to thank our colleagues in China for their achievements and wish them continued success together with Warburg Pincus.”