Advent International to acquire majority stake in GS Capsule
Investment will strengthen Advent International’s strategic focus on the healthcare sector in Greater China
Shanghai, 9 August 2021 – Advent International, one of the world’s largest and most experienced private equity investors, today announced that it has agreed to acquire a majority ownership interest in Shanxi Guangsheng Medicinal Capsule Co., Ltd (“GS Capsule”), the largest domestic capsule provider in China, from Meihua Holdings Group and co-investors.
GS Capsule produces gelatin, enteric, HPMC and pullulan (non-gelatin) capsules for pharmaceutical and healthcare product companies across China and for export to international markets in North America, Europe and Southeast Asia. With its leading market position in China and dedication to best-in-class product quality, the company is well placed to take advantage of the growing domestic and global capsule markets.
Advent has significant investment experience in the healthcare industry. Since 1990, the firm has invested US$9.5 billion in 50 companies in the sector worldwide. In addition to GS Capsule, recent pharmaceutical and healthcare investments include BioDuro-Sundia, RxBenefits, RA Chem Pharma, Industria Chimica Emiliana, Vitaldent, Definitive Healthcare, AccentCare, and Bharat Serums and Vaccines.
The transaction will be subject to customary closing conditions.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 380 private equity investments across 42 countries, and as of March 31, 2021, had $75 billion in assets under management. With 14 offices in 11 countries, Advent has established a globally integrated team of over 245 private equity investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
About GS Capsule
Founded in 1983 and based in Shanxi Province, China, GS Capsule is the largest domestic capsule manufacturer with annual production capacity of 40 billion capsules. It currently serves more than 600 customers across pharmaceutical and nutraceutical industries in both domestic and export markets with a diversified portfolio including gelatin, enteric, HPMC and pullulan capsules. With nearly 40 years of experience in capsule manufacturing, GS Capsule has successfully grown into a leading partner to its pharmaceutical and nutraceutical customers and is well recognized for its customer service, quality control and technological capabilities.
About Meihua Holdings Group
Meihua Holdings Group is a global leader in the development and manufacture of amino acid products for the nutrition, food and pharmaceutical industries with clients in more than 100 countries. Over the last 30 years, Meihua Group has grown from a privately owned local start-up to the largest amino acid supplier in China. The company continues to create value for customers with technological innovation and aims to establish a high-end bio-fermentation and bio-pharmaceuticals industrial platform by leveraging its complete industrial chain, advanced supporting facilities, and full range of services. With over 13,000 employees, Meihua Group is dedicated to the sustainable health of its people, customers and community. The company has been listed on the Shanghai Stock Exchange since 2010 with current market capitalization around RMB 20 billion.