China Everbright acquires elderly care business

Financial details of the deal were not disclosed, but China Everbright is expected to maintain the stability of Huichen management while contributing to the company's operations. According to a statement, the investment will leverage the GP's financial resources and networks in order to advance growth opportunities related to a rapidly ageing Chinese population.

"Huichen possesses the finest elderly health care management capability in China - and indeed the world," said Chen Shuang, CEO of China Everbright. "We see huge opportunities with the government policies supporting the development of Chinese elderly care industry, and the growing aging population in China. As CEL's [China Everbright's] long-term quality asset, Huichen is expected to create lasting and stable returns on investment for CEL and the company's shareholders."

Founded in 2007, Huichen offers integrated senior health care services including geriatric treatment, rehabilitation and community services. It operates six apartment complexes for the elderly and a daily management center with over 3,000 beds.

As China Everbright's first investment in the elderly care sector, the acquisition is being framed as a strategic entry into an industry which is expected to account for 25% of the country's population by 2030. The imperative to anticipate this evolving demographic shift was behind a number of government initiatives in 2015.

China Everbright was established in 1997 and focuses on a cross-sector approach including investment in real estate, new energy, infrastructure and healthcare. The firm launched an RMB10 billion ($1.5 billion) fund-of-funds earlier this year with an aim to diversify product lines and expand its cross-border asset management exposure.

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• Topics
• Greater China
• Healthcare
• Buyouts
• China Everbright
• China