UK-based growth market private equity firm Actis has exited its investments in Chinese diagnostics business Chemclin for $150 million, it said in an announcement on Thursday.
The firm invested in Chemclin in 2013 through a consortium led by Actis with China International Capital Corporation (CICC) Private Equity and OrbiMed to acquire a majority stake in the diagnostics company. Actis did not disclose the buyer of its exit investment and the returns gained.
Since then, Actis went on to work with the management of Chemclin to originate, finance and to acquire a controlling stake in Beyond Diagnostics, a local in vitro diagnostics (IVD) company with proprietary and complimentary CLIA (Chemiluminescence Immunoassay) technology and a product portfolio targeting new consumer segments.
Actis has also helped to develop Chemclin’s business strategy and incentive plan. Over the last five years, Chemclin has grown its hospital network and stayed ahead of the curve in a highly competitive market, said the PE firm.
Based in China, Chemclin is a diagnostic business for infectious disease and oncology test. It provides IVD and CLIA tests enabling hospitals to offer disease screening, diagnosis and biochemical technology.
“Across China and other emerging markets there is a growing need to replace costly imported technologies with locally developed products. Chemclin is well positioned to capitalise on this opportunity and we are delighted to have played an important role in the business’ growth story,” said Actis’ Beijing office partner, Dong Zhong.
The IVD sector in China is the fourth largest globally, with increasing demand for more and improved healthcare options accompanied by shifting consumer preferences and increasingly health conscious lifestyles and rising incomes.
While Chemclin CEO, Lin Li commented: “Actis understands the power of partnership and helped to strengthen Chemclin’s leadership in the sector. Actis supported the acquisition of Beyond Diagnostics and added value during the integration process. This allowed Chemclin to enhance its product offering in a more cost-effective manner than through R&D alone.”
According to Actis, it had committed more than $3 billion across Asia for the last 15 years, with offices and Beijing and Hong Kong. The firm was reported to be raising $750 million real estate fund to acquire the Asia realty portfolio of Standard Chartered Private Equity.
Last year, Actis pumped in $65.5 million to take over Malaysia-based and Bursa-listed payments systems GHL Systems for an initial 44.4 per cent stake from both Malaysia-headquartered PE firm and GHL’s executive vice chairman Simon Loh.