In order to further expand the product line, realize complementary advantages, improve the market share, enhance the brand influence and achieve long-term strategic development goals, Beijing Leadman Biochemistry Co., Ltd. proposed to acquire 70% of the shares of DiaSys Diagnostic Systems (Shanghai) Co., Ltd. (“DDS”) and 70% of the shares of DiaSys Diagnostic Products (Shanghai) Co., Ltd. (“DDP”). All the related parties have signed Equity Transfer Contract in September 2014 and the closing of the first step was completed in October 2014.
DiaSys Diagnostic Systems GmbH is headquartered in Holzheim, Germany. The company is a cross-border company which is specialized in the R&D, production and sales of in-vitro-diagnostic products. Since DiaSys Germany first launched all-liquid, ready-to-use and long-acting biochemical reagents in 1991, it has achieved good reputation and market response and is honored as “Father of Fluid Biochemical Reagents” in Europe. Meanwhile, it is also the first company in Europe to receive the CE-Certificate of in-vitro-diagnostic reagent. DiaSys entered China in 1997 and after years of development, the brand “DiaSys” has already gained rather high reputation and big influence. It is highly recognized in the field of in-vitro-diagnostic, especially in the middle-and-high-end market of tertiary hospitals in China.
In this case, Leadman acquired DDS, which is the holding subsidiary of DiaSys Gemany and mainly engaged in R&D, production, sales and trading; and DDP, which is a wholly-owned subsidiary of DiaSys Germany and mainly engaged in production and packaging. The products which DiaSys Diagnostic sells in China include biochemical test items such as liver function, renal function, blood fat and lipoprotein, blood sugar, myocardial enzyme, electrolyte, autoimmune antibody, rheumatism, pancreatic function etc.
This transaction is carried out in two steps. During the first step, Leadman used the remaining over raised funds and its own fund, together with its co-investors Leading Capital, Genimous Investment and Sailing Capital, which paid cash, to acquire 70% of the shares of DDS and 70% of the shares of DDP from 6 shareholders including DiaSys Germany. During the second step, Leadman will acquire 45% of the shares of DDS from Leading Capital, Sailing Capital and Genimous Investment and 39% of the shares of DDP from Leading Capital and Sailing Capital through issuing shares. After that, Leadman will directly hold 70% of the shares of DDS and 70% of the shares of DDP.
As the exclusive M&A consultant for DiaSys Disgnostic, the consulting team of Eurasian Consulting has provided their advice and suggestions with professional business skills and rich experience during the acquisition process and finally won the most favorable purchase price and terms for the shareholders of DiaSys. The management structure and operation status will remain stable after closing.
