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Tower Capital-Led consortium weighs Eu Yan Sang stake sale, sources say

Customers browse traditional Chinese herbal products inside a Eu Yan Sang store in Singapore, on Friday, Feb. 8, 2013.  Photographer: Munshi Ahmed/Bloomberg
Customers browse traditional Chinese herbal products inside a Eu Yan Sang store in Singapore, on Friday, Feb. 8, 2013. Photographer: Munshi Ahmed/Bloomberg (Bloomberg)

By Elffie Chew, Vinicy Chan and Manuel Baigorri

(Bloomberg) — A Tower Capital Asia-led consortium is considering selling its consumer health-care company Eu Yan Sang International Ltd., according to people with knowledge of the matter.

The Singapore-based mid-market private equity firm, along with Temasek Holdings Pte’s unit Blanca Investments and members of the founding family, are working with financial advisers on the planned disposal of their majority stake in the traditional Chinese medicine company, the people said. A deal could value Eu Yan Sang International, which was taken private in 2016, at about $800 million, said the people.

The remaining shareholders outside the consortium may participate in the potential sale, the people said, asking not to be identified as the process is private.

Deliberations are at an early stage and the consortium could decide to hold onto the asset, the people said. A spokesperson for Temasek declined to comment, while representatives for Eu Yan Sang International and Tower Capital Asia didn’t respond to requests for comment.

Eu Yan Sang International has been in business for 144 years, tracing its roots to a shop in Gopeng, Perak, north of Kuala Lumpur in 1879, according to its website. Its roughly 900 products include bottled bird’s nest and Hou Ning powder. Research collaboration with the Chinese University of Hong Kong led to products including a pill to address menstrual and menopausal symptoms for elderly women, and an anti-viral formula for use during the SARS epidemic, the website shows.

The Singapore-headquartered company currently has over 170 retail outlets, about 25 TCM clinics and three medical centers across greater China, Singapore and Malaysia, according to the website. It also manufactures TCM products at plants in Hong Kong and Malaysia.

In 2022, Japanese trading house Mitsui & Co. agreed to participate in a Tower Capital Asia fund that is an investor in Eu Yan Sang, according to a statement. Mitsui also backed US supplement maker Thorne HealthTech Inc. four years earlier, and the two firms have jointly established a Singapore entity, the statement shows.

—With assistance from Xiao Zibang.

©2023 Bloomberg L.P.