Warburg Pincus completes buyout of DKSH’s China healthcare biz for $99.45m

Private equity major Warburg Pincus has completed the buyout of DKSH’s healthcare business in China for CHF100 million ($99.45 million), marking the New York-headquartered investor’s first control deal in the country.

The acquired business will now operate as an independent entity, and will launch a new brand in January 2019.

The transaction includes DKSH’s pharma, consumer health and medical device businesses in China, while the group continues to hold its local business of consumer goods, performance materials and technology.

“We have a high regard for DKSH’s reputation and professionalism in China’s healthcare distribution industry. We look forward to partnering with the team to build the business into a leading healthcare services platform in China. China’s healthcare industry presents tremendous opportunities for high-quality pharmaceutical and medical device products, and we are confident that the business will continue to introduce advanced healthcare products from global brands to Chinese patients and consumers,” said Min Fang, managing director of Warburg Pincus.

DKSH entered into the partnership agreement with Warburg Pincus in July 2018. Prior to that, the Swiss corporate services firm had sold two pharmaceutical brands, Combizym and Hirudoid, to the Chinese pharma distributor CMS.

The China healthcare unit focuses on the market expansion and distribution of pharmaceuticals, medical devices, and OTC/consumer health products in the country.

Despite no longer owning DKSH China Healthcare, DKSH Group will continue to support the business through its network to provide one-stop solutions for their clients in the region.

With over 150 years of history, DKSH Group’s healthcare business in Asia spans across 13 markets, including Cambodia, China, Hong Kong SAR, Indonesia, South Korea, Laos, Macao SAR, Malaysia, Myanmar, Singapore, Taiwan, Thailand and Vietnam.

Meanwhile, Warburg Pincus said it will upgrade supply chain capabilities, attract top-tier talents, and create synergies with Warburg Pincus global healthcare and logistics portfolio companies and providing capital support to expand the scope of services for DKSH China Healthcare’s clients.

“With additional capital strength and resources from Warburg Pincus, our business potential will be further unleashed,” said Stanley Jin, general manager of DKSH’s healthcare practice.

Warburg Pincus has invested over $10 billion in more than 150 healthcare companies globally. In China, a market it penetrated in 1994, it has backed companies such as Lepu Medical, Wuxi AppTec, China Biologic Products, Amcare Women’s & Children’s Hospital and Jinxin Fertility.

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.

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.