China Botanic Development Holdings Limited a packaged food manufacturer, distributer and retailer, has acquired the entire equity interest in Guangdong Kangli Pharmaceutical Company Limited through Shenzhen Conseco Seabuckthorn Biotechnology Company Limited, its wholly-owned subsidiary, for an aggregate consideration of CNY23,600,000.
Guangdong Kangli's main focus is on the direct sales of medicine, health care products and equipment in mainland China. Guangdong Kangli is the holder of the License dated 8 January 2007 issued by the Chinese Ministry of Commerce, which covers the direct sales of health care products and equipment in Shenzhen. It has also been appointed by the State Food and Drug Administration as the one of the first eight companies engaging in pharmaceutical e-commerce selling on the internet.
Regarding the acquisition, But Ka-wai, chairman of China Botanic, stated that as a leading snack food manufacturer and distributor, China Botanic had successfully diversified their business to include manufacturing and sale of Seabuckthorn related health products in the PRC. He added that the acquisition of Guangdong Kangli would provide China Botanic with an opportunity to enter the direct sales business of health care products in the PRC with a readily available license.