Eu Yan Sang: Institutionalisation of a Century-Old Heritage Company

Richard Eu Yee Ming was the CEO of Eu Yan Sang International, a leading health and wellness company in Singapore. Founded in 1879 by Eu’s great-grandfather, the company had evolved from a traditional Chinese medical hall into an accessible modern brand under his watch. However, by the 2010s, growth had plateaued amid operational inefficiencies, declining profitability and the lack of a clear successor within the family.

To revitalise the business and secure its future, Eu turned to financial institutions for assistance. Tower Capital Asia (TCA) led a consortium with Temasek and the Eu family to privatise the company in a S$269 million (US$199.75 million ) deal. The consortium professionalised governance, streamlined operations and implemented a digital transformation programme. The company introduced a product-led approach, developed an omnichannel presence and repositioned itself as a health and wellness brand.

Fiscal discipline and strategic clarity improved profit margins and strengthened the balance sheet. After a multi-year process, Eu Yan Sang was acquired by Mitsui & Co. and Rohto Pharmaceutical in a deal valued at S$808 million (US$600 million). Eu managed to secure more than a profitable exit, he secured the preservation of his family’s heritage and the continuation of the company under long-term stewardship.

This case may be used for graduate, postgraduate and executive education classes. Learning objectives for the students are to assess how strategic brand repositioning and product innovation can rejuvenate traditional industries, evaluate the challenges and approaches to institutionalising a family business while retaining its core values, examine how succession planning, ownership structure and leadership transitions impact the longevity of family-owned enterprises, analyse the role of private equity and strategic investors in preserving and scaling legacy businesses and discuss the rationale, trade-offs and implications of different exit strategies.

Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email cmpshop@smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account.

Download information

SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:

·      The Case (SMU-25-0030)

·      Teaching Note (SMU-25-0030TN)

For purchase of the case and supplementary materials via The Case Centre, please access the following links:

·      The Case (SMU-25-0030)

·      Teaching Note (SMU-25-0030)

For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:

·      The Case (SMU-25-0030)

·      Teaching Note (SMU-25-0030)