Bayer Plans To Acquire 100% Of Shares Of China's Dihon Group

Bayer Healthcare announced its plans to acquire 100% of shares of China-based Dihon Pharmaceutical Group. The acquisition is expected to close in the second half of 2014 and will include merger control clearance. No financial details have been revealed by either company regarding the transaction.

Dr. Marijn Dekkers, CEO of Bayer AG, said, “We aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions globally. We are very pleased to have identified a consumer health care company in China with such a strong track record of success built by its dedicated employee base.” Dr. Dekkers said the acquisition moves Bayer into a leading position among multinationals in the over the counter (OTC) industry in China. Dihon also brings a portfolio of well-known consumer brands which Bayer plans to expand to an even broader range of self-care options.

Dihon is a privately held company specializing in OTC and herbal traditional Chinese medicine (TCM) products. The company is a leading player in China’s OTC industry with flagship products such as dandruff treatment Kang Wang and antifungal cream Pi Kang Wang. Dihon is also known for providing product options such as Dan E Fu Kang for treatment of various women’s health indications.

Dr. Olivier Brandicourt, CEO of Bayer HealthCare, said, “Adding the strong OTC brands from Dihon to our portfolio will significantly advance our business in China and positions us well for future growth. Equally important is the foothold we will gain in TCM, which makes up about half of the OTC segment in China and is a well-accepted and sought after line of natural science-based alternative therapies for consumers looking for trusted solutions for their healthcare needs.” Dr. Brandicourt also said Bayer plans to leverage its recent acquisition of Steigerwald in combination with Dihon’s herbal TCM expertise and pipeline, which share a related heritage.

The China-based pharmaceutical company generated sales of 123 million euro in 2013 alone. Dihon currently employs an estimated 2,400 people in R&D, sales, manufacturing, and marketing. Aside from its Chinese market, the company also sells products in other countries such as Cambodia, Myanmar, Vietnam, and Nigeria.

Source: http://www.dddmag.com/news/2014/02/bayer-acquire-chinas-dihon-pharmaceutical-group