Cross-Border Acquisition: Chinese-funded Enterprises Frequently Acquire Foreign Health Food Brand
Before
the end of 2018, health food imported through CBEC needn’t get registration or filing
approval. Therefore, in recent years, many foreign health food brands have
entered the Chinese market through CBEC platforms. Quite a lot of them have accumulated great reputation and popularity in China, such as Swisse, GNC and so
on.
For
Chinese-funded enterprises, the acquisition of these well-known overseas health
food enterprises with high consumer awareness and popularity is undoubtedly a
short-cut for realizing enterprise expansion, opening its own brand awareness,
and quickly seizing the domestic health food market. Therefore, driven by
multiple benefits, Chinese-funded enterprises have frequently purchased
“foreign health food brands” in recent years. In 2016, Swisse was incorporated
into Health & Happiness Group. And in February 2018, Harbin Pharmaceutical
Group bought 40% shares of GNC, spending 300 million USD.
Table 1 Cases of Chinese-funded
Enterprises Acquiring Overseas Health Food Enterprises (Incomplete Statistics)
|
Chinese
enterprise/brand
|
Time
|
Foreign
enterprise /brand
|
Holding
shares
|
Amount
|
|
Health & Happiness Group
|
2015.9
|
Australia: SWISSE
|
83%
|
1.386 billion AUD
|
1.697 billion AUD
|
|
2016.12
|
17%
|
0.311 billion AUD
|
|
Kingdomway
|
2015.1
|
America: Doctor’s Best Holdings
|
51%
|
35 million USD
|
|
2015.6
|
America: Vitatech
|
Undisclosed
|
0.595 billion RMB
|
|
2017.2
|
America: Labrada
|
30%
|
8.1 million USD
|
|
2017.6
|
Singapore: VITAKIDS
PTE.LTD.
|
95%
|
17.48 million RMB
|
|
Singapore: PINK
OF HEALTH PTE.LTD.
|
95%
|
|
2018.5
|
America: ZIPFIZZ CORPORATION
|
100%
|
80 million USD
|
|
Aland
|
2010
|
America: Inverness Medical Company Nutrition
Department (IVC)
|
100%
|
63.4 million USD
|
|
2014.6
|
America: Adam Nutrition
|
Undisclosed
|
Undisclosed
|
|
2016.3
|
Netherlands: Bloem Health Products B.V.
|
Undisclosed
|
Undisclosed
|
|
2016.6
|
America: Nutrition business of Perrigo
|
100%
|
Undisclosed
|
|
2016.12
|
Britain: Brunel Healthcare Manufacturing Limited
|
100%
|
Undisclosed
|
|
Britain: Biocare Limited
|
100%
|
Undisclosed
|
|
Sinolife United
|
2014.11
|
New Zealand: Good Health
|
60%
|
23.27 million NZD
|
|
Fosun
|
40%
|
|
By-Health
|
2016.3
|
Establish a joint venture with NBTY(America) in Hong
Kong, obtain the permanent rights to operate Nature's Bounty and Met-RX and
use the trademarks of them in the Chinese market
|
60%
|
80~120 million RMB
|
|
Shanghai Pharma
|
2016.8
|
Australia: Vitaco
|
60%
|
1.58 billion RMB
|
|
Primavera Capital Group
|
40%
|
|
Ausnutria
|
2016.8
|
Australia: Nutrition Care
|
100%
|
0.16 billion RMB
|
|
New Hope Group
|
2016.8
|
Australia: Australian NaturalCare (ANC)
|
100%
|
Undisclosed
|
|
Xiwang Food
|
2016.9
|
Canada: Kerr Investment Holdings
|
80%
|
0.73 billion USD
|
|
Primavera Capital Group
|
20%
|
|
Sirio Pharma
|
2016.12
|
Germany: Ayanda
|
100%
|
Undisclosed
|
|
CDH Fund
|
2017.3
|
New Zealand: Better Health
|
80%
|
Undisclosed
|
|
HGGC LL
|
2017.5
|
America: Nutraceutical International Corp
|
Undisclosed
|
0.446 billion USD
|
|
Firmus
|
2017.12
|
America: Vitamin World
|
Undisclosed
|
28 million USD
|
|
Harbin Pharmaceutical Group
|
2018.2
|
America: GNC
|
40%
|
0.3 billion USD
|
Most brands already have strategic plans in the
Chinese market, some have applied registration and filing with former CFDA,
some have got the filing certificates. The details are presented in Section
2: How Many Health Food are Registered in China of which is
issued by CIRS. If you would like to get the to get more
complete information pertaining to Chinese health food, please click here to order it.
If you have any needs or questions, please contact us at service@cirs-group.com.
