Actis exits Chinese diagnostics business Chemclin for $150m03/08/18
Actis, a leading growth markets investor, has today announced its successful exit from Chinese diagnostics business Chemclin for US$150 million.
Chemclin is a leading Chinese diagnostic business for infectious disease and oncology tests. The company provides in vitro diagnostics (“IVD”) and Chemiluminescence Immunoassay (“CLIA”) tests enabling hospitals to offer disease screening, diagnosis and biochemical technology.
China’s IVD sector is the fourth largest globally. Over the past 20 years China has experienced a rapid social and economic transformation. Changing consumer preferences, increasingly heath conscious lifestyles and rising incomes have contributed to an ageing population, increasing demand for more and improved healthcare options.
In 2013, Actis led a consortium with CICC Private Equity and OrbiMed, to acquire a majority stake in Chemclin. A year later, as part of the platform strategy for Chemclin, Actis worked with management to originate, finance and to acquire a controlling stake in Beyond Diagnostics, a local IVD company with proprietary and world-leading complimentary CLIA technology and a product portfolio targeting new consumer segments.
Alongside management Actis helped to develop Chemclin’s business strategy and incentive plan. Over the last five years, Chemclin has expanded its hospital network and maintained its leadership position in a highly competitive market.
Mr. Lin Li, CEO of Chemclin, said: “Actis understands the power of partnership and helped to strengthen Chemclin’s leadership in the sector. Actis supported the acquisition of Beyond Diagnostics and added value during the integration process. This allowed Chemclin to enhance its product offering in a more cost-effective manner than through R&D alone.”
Dong Zhong, a Partner in the Beijing office at Actis, said: “The management team at Chemclin are one of the best in China’s IVD space, adhering to world-class standards and offering strong execution capabilities. We have worked closely over the last five years, supporting the company’s strategy and product development, and in doing so we have helped to modernise China’s healthcare technologies.
“Across China and other emerging markets there is a growing need to replace costly imported technologies with locally developed products. Chemclin is well positioned to capitalise on this opportunity and we are delighted to have played an important role in the business’ growth story.”
Actis has committed more than US$3 billion across Asia over the last fifteen years. With offices in Beijing and Hong Kong, Actis uses local knowledge and deep sector expertise to invest in ambitious and innovative businesses.