On 20th June 2018, Beroni Group (“Beroni”) is entered into a binding agreement to acquire 100% of Medicine Plus Co., Ltd, (“MP”), a pharmaceutical company based in Osaka, Japan.
Beroni Group successfully completed its due diligence on the MP and decided to acquire it, expanding Japanese market. At the signing ceremony, Beroni’s Executive Chairman Jacky Zhang mentioned that the transaction truly transforms Beroni into an international biotechnology company with businesses and investments in Australia, Japan, China and the USA. He said “MP’s business is firmly within our core competencies and is a compelling strategic fit with our existing business in China. This acquisition accelerates our health-related product growth strategy as we move to integrate the MP business. We are also delighted to welcome the highly efficient Japanese management team to Beroni.”
MP was incorporated in Japan on 15 February 2005 and sells a wide range of medical drugs, health foods, supplements, cosmetic products and household goods in the Japanese market. Its products are sold to chemists, clinics, dentists, supermarkets and other retail outlets. MP also has a significant presence on the popular e-commerce sites in Japan such as Rakuten, Yahoo and Amazon. In addition to selling its own branded products, MP also sells a diverse range of third party branded products. MP has an established wholesale network of over 2,000 distributors and 7,500 sales outlets. Approximately 50% of its sales are via the wholesale network and the other half through e-commerce platforms. Its e-commerce business is the fastest growing of its sales channels, with an existing membership base of almost 700,000 consumers. MP has developed an efficient warehouse logistics and delivery management system for its diverse range of products to ensure fast product turnaround and minimum inventory levels.
Following the acquisition, Beroni will work with MP to expand its sales and distribution network especially in the e-commerce business. At the same time, the acquisition will extend Beroni’ s suite of products and enable Beroni to sell MP’ s products into China, the world’s largest e-commerce market.
This acquisition provides Beroni with a strategic platform in the Japanese market especially in the e-commerce sector. It is benefit for expanding the MP business to stores frequented by Asian tourists in Japan such as duty-free shops and tourist attraction areas and expanding Beroni’s product lines to cater for the fast-growing consumer markets in Asia, and it is a significant opportunity to leverage marketing and selling expertise and relationship between its business in Japan and in China and drive future organic growth in the overseas e-commerce market.