LONDON: Haleon plc has entered into an agreement to acquire the remaining 12% equity interest in its Chinese over-the-counter (OTC) joint venture, Tianjin TSKF Pharmaceutical Co., Ltd., from partner Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited, the company announced Tuesday.
The acquisition, valued at approximately 1.623 billion renminbi (£0.2 billion), follows Haleon’s purchase of a 33% stake in TSKF in December 2024. Upon completion of the deal, TSKF will become a wholly owned subsidiary of Haleon.
Funding for the transaction will be provided through a combination of Haleon’s existing cash reserves and newly secured third-party renminbi-denominated debt. The acquisition remains subject to customary closing conditions, including shareholder approval from DRTG and regulatory clearances, and is expected to be finalized within the next three months.
Haleon (LSE/NYSE: HLN), a global leader in consumer health, oversees a portfolio that includes major brands such as Advil, Sensodyne, Panadol, Voltaren and Centrum, spanning categories including pain relief, oral health, respiratory health, digestive health and vitamins.
TSKF, founded in 1984 as a joint venture between Haleon, TPG and DRTG, manufactures and distributes OTC products in China under Haleon’s branding. Its product lineup includes Fenbid, Contac, Bactroban, Voltaren and Flixonase in therapeutic areas such as pain relief, respiratory health and skin health.
DRTG (SHSE: 600329 / SGX: T14), the pharmaceutical manufacturing arm of TPG, specializes in research, development and production of Chinese herbal and western medicines, along with wholesale and retail operations within China. The company, founded in 1981, is publicly traded on the Shanghai and Singapore stock exchanges.
Haleon’s move to consolidate ownership of TSKF aligns with its broader strategy to strengthen its presence in the Chinese consumer health market.