CDH, China Grand Pharma buy control of contact lens maker
CDH Investments has teamed up with Hong Kong-listed China Grand Pharmaceutical & Healthcare to acquire a 71.25% stake in contact lens maker Shanghai Weicon Optical for $78.75 million.
According to a regulatory filing, CDH will pay $21 million for a 19% stake in Shanghai Weicon, with a China Grand Pharma subsidiary covering the rest of the transaction. They will put in an additional $15 million to support the company's future business growth. CDH's contribution will be $4 million.
Upon completion of the transaction, China Grand Pharma and CDH will hold stakes of 55% and 20%, respectively. Shanghai Weicon's management team will retain a 25% stake in the firm.
China Grand Pharma manufactures cerebro-cardiovascular medicines for conditions such as hypertension, as well as antibiotic and anti-baterial remedies and drugs for treating pain and fevers.
It also operates eye-care business through its subsidiary Hubei Grand Everyday Bright Eyes, manufacturing ophthalmic gel and eye drops in China. The company said Shanghai Weicon - owning about 30% of domestic lens market - is highly complementary to its eye-care business.
CDH is currently investing in its fifth US dollar-denominated China fund, which closed earlier this year at $2.55 billion.
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