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.
The investment by CVC marks an important milestone in AHCI's growth path and we are privileged to partner with such a leading international PE fund that can strengthen the competitiveness of the company and secure new opportunities in China's fast developing healthcare sector.