CVC Capital Partners Plc, a private equity investment institution, is reportedly considering selling its Chinese chain drugstore Xi’an Yikang Pharmaceutical Co., according to sources cited by Bloomberg.
CVC Capital Partners Plc, headquartered in Luxembourg, is a global leading private equity and investment management company.
As the pertinent information has not been disclosed publicly, these sources requested anonymity. They mentioned that CVC is collaborating with its business advisors to evaluate the possibility of selling the business. It is estimated that if a deal is reached, the market valuation of this pharmacy chain operating in the northwest region of China could fall between 500 million to 600 million US dollars.
The sources added that negotiations are still ongoing, and a final agreement has not been reached yet. A representative from CVC declined to comment on the matter. Xi’an Yikang Pharmaceutical Co. did not immediately respond to Bloomberg’s request for comment.
CVC first invested in Xi’an Yikang in 2021, and subsequently completed a full acquisition of the company in 2023.
Established in 2001, Xi’an Yikang Pharmaceutical Co. is based in Xi’an. According to information on its official website, the company operates with a “from online to offline” and “patient-oriented” business model, with over 1,700 pharmacy branches.