Alantra advises Meihua Holdings Group on the sale of its subsidiary GS Capsule to Advent International

Aug 2021

Sell-side advisory

Shanghai – Alantra, the independent global mid-market investment bank, has acted as exclusive financial advisor to China Meihua Holdings Group Co., Ltd. (“Meihua Group”) on the sale of its subsidiary, Shanxi Guangsheng Medicinal Capsule Co., Ltd (“GS Capsule”), to Advent International. As disclosed by Meihua Group, the enterprise value of GS Capsule is approximately RMB 1.2 billion or US$185 million.

Founded in 1983 and based in Shanxi Province, GS Capsule is the largest domestic capsule provider in China. 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.

The transaction will allow GS Capsule to leverage its synergies with Advent International’s portfolio companies to further strengthen its product and service quality and expand GS Capsule’s presence worldwide. It will also strengthen Advent International’s strategic focus on the healthcare sector in Greater China.

Meihua Group is a global leader in the development and manufacture of amino acid products for the nutrition, food and pharmaceutical industries. Meihua Group has been listed since 2010 with current market capitalization around RMB 20 billion or US$3 billion.

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 US$75 billion in assets under management.

Richard Zhu, Managing Director at Alantra, commented: “The sale of GS Capsule further strengthens Alantra’s expertise advising on China inbound acquisitions. In the last 24 months, we have already advised BCR Group, a Chinese retail display provider, on its sale to Switzerland’s Partners Group and advised Norway-headquartered Elkem ASA, a world-leading supplier of silicon-based materials, on the acquisition of Polysil.”