Alliance Boots acquires minority stake in Chinese pharmaceutical wholesaler
Alliance Boots, the pharmacy chain and health and beauty products retailer, has acquired a 12% stake in Chinas Nanjing Pharmaceutical Company for around £56 million.
On completion of the transaction Alliance Boots will be the second largest shareholder in Nanjing Pharmaceutical Company Limited with board and operational management representation.
Alliance Boots executive chairman Stefano Pessina said the acquisition would give the company a further presence in China.
Nanjing Pharmaceutical Company is the fifth largest pharmaceutical wholesaler in China with sales of around £2 billion in 2011. Alliance Boots said it had a strong market position in its home province of Jiangsu operating distribution centres in 12 cities across eight provinces and one autonomous region.
Alliance Boots first entered the Chinese pharmaceutical distribution market in 2008 through its Guangzhou Pharmaceuticals Corporation joint venture, which operates in complementary geographies.
Pessina said: "We are delighted to be partnering with such an established player in the Chinese pharmaceutical market and believe there is huge potential in working together to create a great healthcare distribution network.
"This agreement builds on the success we have already had in China and further strengthens our commitment to the country as well as our willingness to play an active role in the evolution of the market in partnership with the authorities and key players. We believe that this strategic investment marks an important step in our long term development in Asia."
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