Colgate-Palmolive [CL:US], Unilever [ULVR:LN], and Church & Dwight [CHD:US] are bidding for the Chinese consumer-product company Weimeizi for up to USD1bn, according to South China Morning Post on November 9. Weimeizi consulted with Citigroup [C:US] and New York-based investment bank BDA Partners for suggestions to potential bidders.
Weimeizi, a Guangzhou-based company, was founded in 2006. It mainly produces high-end dental products including toothpaste and toothbrushes under the Saky brand. The company gained investments from Lenovo's [0992:HK] VC unit in 2014 and from VC firms Orchid Asia and Eastern Bell in 2016, receiving over hundreds of millions in RMB. According to the 2015 financial report on Weimeizi's website, the turnover of Saky products achieved around USD3bn, ranked first in the industry with a YoY growth rate of 57%. According to a study in 2016 China Oral Health Trends, the Chinese oral health market grew 6.6% YoY, faster than the 3.7% of the Chinese FMCG market. The market value is estimated to reach RMB500bn in 2020.