Trustar Capital, the private equity (PE) arm of Chinese alternative investment firm CITIC Capital Holdings, has wrapped up its acquisition of Guilong Pharmaceutical through its China buyout fund, the firm announced without disclosing the financial details.
The investment signifies Trustar Capital’s ambition across China’s over-the-counter (OTC) pharmaceutical and wellness industry, which has been riding on a tailwind thanks to the extensive government support.
“Looking ahead, we aim to utilise our resources and post-investment experience to further empower the company. Additionally, we plan to leverage our M&A expertise and expand Guilong Pharmaceutical’s product line and treatment offerings, driving sustainable growth going forward,” Yan Zhao, partner of Trustar Capital, said in a release on Tuesday.
Founded in 1989, Guilong Pharmaceutical offers OTC medicines for sore throat and other throat-related ailments. The acquisition adds to Trustar Capital’s existing healthcare portfolio that includes firms like Harbin Pharmaceutical Group, GNC, Taibang Biologic Group, Jissbon, Genertec Universal Medical, Hygeia Healthcare, Genesis MedTech, and MedAlliance.
Trustar Capital is eyeing more mergers and acquisitions within the pharmaceutical and wellness space going forward, per the release. With $8.7 billion committed capital under management, Trustar focuses on control buyout opportunities globally and has completed around 100 investments since inception across China, Japan, Europe, and the US.
Asia Pacific’s healthcare buyout activity went down from $17.1 billion in 2022 to $14.2 billion in 2023, according to Bain & Company’s Global Healthcare Private Equity Report 2024. Despite the slowdown in deal sum, APAC held up well compared to other regions, with India contributing to the largest share of 2023’s deal value at $4.6 billion, per the report.
Although the report highlighted that many investors have taken a more cautious approach as China was navigating through an evolving healthcare landscape and a sluggish economy, the country saw a recovery in healthcare buyout deals that were projected to hit 58 deals worth $3.4 billion in value in 2023. The deal sum was almost double the $1.6 billion raised in 2022, per the report.
