TaDAO!: J&J Buys DaBao

Thursday, April 19, 2007 19:38
Posted in category Going to Market, Invest in China
Comments Off on TaDAO!: J&J Buys DaBao

Earlier this week, it was announced that Johnson & Johnson had reached a deal on March 27 to acquire the Chinese cosmetics company DaBao (English site) for 2.3 billion RMB (300 million USD).

According to a CCTV report on the 4th, the bid process closed on the 26th and Avon, Unilever, and J&J were all in the running for the company which has over 3,000 outlets and caters to the low and medium segments of the market.

This deal is very interesting as it shows a few things:

1) At 300 million, it shows that large deals are still available
2) Investment in China is not restricted, it is targeted, and those who are able to add value to a target firm will be able to continue to close deals

3) The FMCG market is heating up… on the low end of the market.. as international firms look to take up leaders in that sector to compliment their high end products.

I also find it very timely that DaBao will retain all branding rights… maybe they spoke to the folks over at Wahaha a few months ago?

Both comments and pings are currently closed.