Australia's Archer agrees Healthe Care sale to China-based Luye

Archer acquired Healthe Care from CHAMP Ventures in 2011, paying A$240 million (then $255 million). The company, founded in 2005, owns 17 hospitals with nearly 2,000 beds, 50 operating theaters and 4,500 employees. It provides a range of acute, mental health and specialty services. Annual sales total about RMB3 billion ($468 million).

Luye said in a statement that the acquisition represents a major breakthrough for the company, allowing it to push into the field of international medical services. Dianbo Liu, Luye's chairman, described the deal as "a rare opportunity," saying that Healthe Care could serve as a platform for his company's expansion into healthcare services not only in Australia and China, but also elsewhere in Asia.

Wenfei Guo, president of Luye, added that over the next 20 years, the company will partner with Healthe Care to roll out a high-end medical services network in tier-one to tier-three cities in China.

Founded in 1994, Luye develops and sells patented prescription medicines in various fields, including oncology, orthopedics and neurology. It has almost 4,000 employees, including 300 R&D specialists, and claims to have launched around 30 products. The company formally entered the healthcare services space in 2013.

Luye Pharma was de-listed from the Singapore Exchange by CDH Investments, CITIC Private Equity, New Horizon Capital and GIC Private in 2012, working in conjunction with Liu. The business went public in Hong Kong in 2104, raising $761 million, and allowing the PE investors to make partial exits.

According to Luye Pharma's most recent interim report, CITIC PE held a 5.92% stake as of June. The 2014 annual report further states that, as of December 2012, GIC owned 5.90% with CDH holding 5.60%.

Last year, Luye Pharma announced that it would take full ownership of industry peer Beijing Jialin Pharmaceutical for RMB2.42 billion, by acquiring a 42.02% interest from 13 existing private shareholders. These included Xinjiang Plane Trees Equity Investment and Beijing Zhongguangcun Guosheng Venture Capital Center. The transaction was terminated in June.

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• Topics
• Exits
• Healthcare
• Greater China
• Australasia
• Archer Capital
• Australia
• China
• Exit
• Trade sale
• healthcare
• Citic Private Equity