Asia Health Century International

In October 2011, CVC invested US$84.1 million to acquire a 24.24% stake in AHCL. Founded in 1998, the company is a leading retailer and distributor of pharmaceutical and healthcare products in Northeast China. The company has established an extensive retail network of 668 drugstores, and a high value-added wholesale operation servicing over 3,500 customers throughout the country.

AHCI has strong capabilities in sourcing and marketing high margin products through both retail and wholesale channels. Apart from a wide range of over-the counter drugs and prescription drugs, the company sells a variety of private labelled healthcare products that enjoy higher gross margin. Its retail stores are managed a team with vast local experience and profound understanding of local culture and consumer behaviour. The company has a unique model of utilising promotional events and membership services in driving its sales. The company generated over 35% of retail revenue from membership sales. Same store sales grew at over 20% CAGR during 2008-2011.

After CVC's investment, the company has grown rapidly into second and third tier cities in the Heilongjiang province, as well as the neighbouring Jilin and Liaoning provinces.