Sanpower Group and China CITIC Bank said they would establish a healthcare industry M&A fund with targeted fundraising of RMB20 billion (US$2.9 billion) to support Sanpower's strategic push into healthcare, the firms announced yesterday.
The fund will back Sanpower's global expansion in medical care and biotechnology across the healthcare sectors, including investing and acquiring overseas projects, importing advanced technologies, improving industry supply chains and creating an industry ecosystem.
Founded in 1993, Sanpower has been building and buying healthcare assets in recent years, including acquiring Israeli senior care company Natali several years ago and announcing plans to acquire Valeant's biopharma unit Dendreon for US$819.9 million earlier this month.
Sanpower's listed entity Nanjing Xinjiekou Department Store Co., Ltd. is near to closing a RMB5.7 billion deal to acquire previously New York Stock Exchange-listed China Cord Blood Corporation to become the biggest cord blood bank in the world. In addition, Sanpower owns several hospitals in China.
"Through biomedical, hospitals, and elderly healthcare sectors, Sanpower is building a healthcare industry ecosystem in China," Sanpower said in a statement.
CITIC Bank said aside from providing financial support, it would also help identify quality assets among its top corporate clients for Sanpower to consider for potential acquisitions.