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.