Cross-Border Acquisition: Chinese-funded Enterprises Frequently Acquire Foreign Health Food Brand

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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 <Guideline on Health Food Exportation to China> which is issued by CIRS. If you would like to get the <Guideline on Health Food Exportation to China> 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-reach.com.