Alliance Boots to buy 12% in China’s Nanjing Pharmaceutical for $88 million
17 Sep 2012
Alliance Boots is buying a 12-per cent stake in China's Nanjing Pharmaceutical Co Ltd for about £56 million ($88 million), as Europe's biggest pharmacy chain looks to expand in China.
Jiangsu province-based Nanjing Pharmaceutical is China's fifth largest pharmaceutical wholesaler, with annual sales of around £2 billion ($3.2 billion).
The Shanghai-listed company has 68 subsidiaries and has major distribution centers located in 12 cities across 10 provinces.
Nanjing Pharmaceutical has approximately 46,000 medical clients including hospitals, wholesalers, chain and social pharmacies, among which there are 250 level 3 hospitals and 500 level 2 hospitals.
The stake purchase will make Alliance Boots Nanjing Pharmaceutical's second-largest shareholder after Nanjing Pharmaceutical Group Limited.
''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,'' said Stefano Pessina, executive chairman of Alliance Boots.
