Warburg Pincus secures first China control deal

DKSH China Healthcare – which will relaunch under a new brand in January – focuses on the market expansion and distribution of pharmaceuticals, medical devices, and over-the-counter consumer health products. It has established a nationwide network supported by an infrastructure and information system and a professional team.

Headquartered in Switzerland, DKSH helps clients find reliable outsourcing partners to grow their business in new or existing markets. Its services include running the entire value chain for a product, from sourcing and market analysis to distribution and after-sales services.

Net sales relating to assets sold to Warburg Pincus came to CHF300 million last year. DKSH's overall healthcare sales in Greater China, South Korea, and Southeast Asia came to CHF6.1 billion, while EBIT reached CHF146.5 million. Greater China accounted for nearly one-third of the company's CHF11 billion in sales across consumer goods, healthcare, performance materials, and technology.

Warburg Pincus will help the newly acquired business with supply chain upgrades, recruitment, and service expansion, and create synergies with other companies in its portfolio. In addition, a strategic partnership has been formed with DKSH Group to support development.

"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, a managing director at Warburg Pincus, in a statement.

The private equity firm's previous healthcare investments in China include Lepu Medical, Wuxi AppTec, China Biologic Products, Amcare Women's & Children's Hospital, and Jinxin Fertility.

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• Topics
• Greater China
• Healthcare
• Buyouts
• Warburg Pincus Asia
• China