FountainVest, Primavera snag 25% EQT stake in China’s LBX Pharmacy

Medical drugs in a pharmacy. Credit: Flickr/epSos .de

A consortium comprising Asia-focused private equity firm FountainVest Partners and China-based global investment firm Primavera Capital Group has acquired 24.78 per cent stake in Shanghai-listed LBX Pharmacy from EQT Greater China II Fund, according to a statement. 

EQT is a co-control investor in LBX from 2008.   

LBX and other investors will hold the remaining 75 per cent stake, following the transaction. The company will now work towards building a new pharmacy retail chain.

Set up in 2001 in the Hunan province, LBX is a leading discount pharmacy superstore chain in China. As of 30 September 2019, LBX operated 3,756 self-owned drugstores and 1,052 sub-franchised drugstores in 22 provinces and municipal cities across China, per the statement.

LBX was listed on the Shanghai Stock Exchange in 2015 as the first IPO in China with a foreign private equity fund as a control or co-control shareholder.

LBX founder and chairman XIE Zilong commented: “EQT provided valuable resources and expertise which contributed to LBX’s strong growth during the last 12 years. With EQT’s strong support and corporate governance model, LBX has built a solid and sustainable foundation for future growth. We are confident that LBX will continue to do well with Primavera and FountainVest as our new partners.”

The transaction was signed and closed on 27 November 2019.

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.