PE-backed Chinese baby skincare brand bought by Johnson & Johnson

Exiting investors include Edmond de Rothschild Private Equity China Fund and Shenzhen Maison Capital, as well as Elsker founder Xiaokun Liu.

Founded in 2006, the company distributes its products through international and local supermarket chains such as Wal-Mart and RT Mart, as well as through specialist mother and baby retailers like Red Baby and Le You. Rothschild came on board as the largest shareholder in 2009, with Liu and his team continuing to manage the business.

Around 18 million babies are born in China each year and the UN expects this rate to be sustained through 2016. Retail sales of baby care products reached RMB3.5 billion in 2010 and are projected to grow 17.5% this year.

"Under Liu Xiaokun's leadership, Elsker has consistently executed its growth strategy with impressive results. We are very proud to have supported the founding team, at a time when believers were few. We see Johnson & Johnson as the best partner to bring in more resources to further develop the brand. Elsker will benefit from J&J's expertise," said Moling Chen, managing director at Rothschild.

The Rothschild China fund was set up in 2009 and focuses on small- and medium-sized enterprises. Maison Capital was founded in 2004 and is currently invested a RMB1.5 billion early-stage and growth-capital fund, targeting the consumer, healthcare and high-tech manufacturing sectors. It has completed 20 investments and secured exits from nearly half of them.

Elsker's financial and legal advisors on the transaction were BDA and Zhong Lun Law Firm, respectively.

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• Topics
• Greater China
• Consumer
• Exits
• China
• Consumer
• Exit