Hong Kong-based Chinese medicine firm PuraPharm Corporation Limited has announced its acquisition of K’An Herb Company, a company engaged in manufacturing of herbal formulas in the US.
The Hong Kong-exchange listed PuraPharm said the acquisition is carried out by its wholly owned subsidiary for US$5.4 million in cash. The acquisition will be funded by internal sources of the group.
In a statement, PuraPharm said the acquisition will provide the company a cost and time effective way to enter the US market.
It can create synergies with PuraPharm’s existing products and expand the products portfolio of its Chinese medicine products, which will increase its competitive advantage in the market.
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The acquisition also presents an excellent opportunity for the Group to leverage on the expertise, resources, and sale network of K’An Herb to develop its business in the U.S. market immediately.
“The acquisition will enable us to expand our operation in the market, which in turn will become an important growth driver,” said Abraham Chan, founder, chairman and CEO of PuraPharm.
Looking forward, Chn said PuraPharm will continue to promote modernisation and internationalisation of Chinese Medicine and enhance the brand awareness of both PuraPharm and Nong’s to capture the huge demand for Chinese medicine at home and abroad.
PuraPharm specializes in the research and development, production and sale of concentrated Chinese medicine granules (CCMG) products under the Nong’s brand.
The Hong Kong CCMG segment is mainly engaged in the sales of CCMG products, excluding the sales through self-operated clinics in Hong Kong.
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The Chinese Healthcare Products segment is mainly engaged in the production and sales of healthcare products in Hong Kong and China.
The Clinics segment is mainly engaged in the provision of Chinese medical diagnostic services and sales of CCMG products through self-operated clinics.
The company’s stock (HKEX:1498) was up 1.59 percent to end the day trading at 3.83 a share at the Hong Kong Stock Exchange.
K’An Herb, meanwhile, is principally engaged in manufacturing Chinese herbal formulas in the US and sells to distributors and healthcare practitioners in the US and Europe. – BusinessNewsAsia.com