SEAVI Advent Private Equity (“SEAVI Advent”) has completed a US$15 million investment in Asia Health Century International Inc. (the “Company” or “AHCI”)
Founded in 1998 in Jiamusi city, Heilongjiang province, the Company is an integrated drugs retailer and wholesaler in northeast China. It has established itself through a series of organic growth and acquisitions in the past 13 years as one of the largest pharmaceutical businesses in Heilongjiang province. To date, it has over 350 direct and franchise retail drugstores across Heilongjiang province and a sizeable pharmaceutical distribution business employing over 1,300 staff.
All of the Company’s directly owned and operated stores have obtained the Good Supply Practice (GSP) certification which is a legal requirement for drugs distribution and retailing in PRC. Of its 5,700 product portfolio, it has exclusive distribution rights for about 130 drugs. In addition, its wholesale business has more than 550 customers including government hospitals and community clinics, most of which are located in the 2nd tier cities of northeast China.
With the recent IPOs of Sinopharm and Shanghai Pharma, and an ongoing medical reform campaign promoted by the Chinese government, consolidation in the pharmaceutical industry (particularly in the wholesale and retail sectors) is inevitable. SEAVI Advent believes that it is matter of time that this industry will be dominated by a handful of established players after witnessing Sinopharm’s aggressive acquisition spate in southern China.
Through further acquisition and consolidation and sustainable organic development, SEAVI Advent sees strong growth potential in AHCI, who is able to establish and strengthen itself as a dominant player in Heilongjiang and nearby northeastern provinces that have been relatively insulated from the fierce competition taking place in other parts, especially southern parts, of China.
About SEAVI Advent Private Equity
SEAVI Advent Private Equity, the exclusive Asian affiliate of Boston based private equity firm Advent International Corporation, is one of the first private equity and venture capital firms to operate in the Asia Pacific region. Since 1984, the firm has invested over US$500 million into more than 100 Asian companies, from growth to late stage, as well as buyout and control transactions. SEAVI Advent has been instrumental in delivering value for many of its portfolio companies, which include Yangzijiang Shipbuilding (Holdings) Ltd, Chemspec Corporation, Shengli Oil & Pipe Holdings Ltd, Venture Corporation Limited and IDS Group.