After entering April, good news came from Bayer Animal Health. The professional managers and consulting companies hired by the Chinese consortium finally straightened out the business and paid the final balance of the equity transaction.
The $8 billion deal took nearly a year, including early contacts and later handovers.
For such a large-scale acquisition, the time-consuming process is not that long, it can only be said to be average.
The larger the case, the more complex the company's business and people involved will be.
It’s not just a matter of handing over the money and delivering the goods. Due diligence is very important to avoid stepping into pitfalls. Handover work is also very important to ensure a smooth transition of personnel and business.
Tens of billions of RMB have been spent, so we naturally need to be more cautious.
Zhang Yida and the other two investment institutions did not press the matter and asked professional managers to patiently integrate it.
Now that the integration work is over, it's time to show off the real technology.
Therefore, Zhang Yida invited Shen Beipeng and Zhang Sanshi to Pate.com to discuss the next "assembly work."
Lu Fenghai, as the CEO of Pate Holdings, also attended the meeting.
Looking at the three big guys Zhang Yida, Shen Beipeng and Zhang Sanshi sitting on the court, he couldn't help but feel a little excited.
These are all tycoons who can make three moves in China’s Internet and venture capital circles.
Sitting here today, I have one theme: assemble Pate Holdings into a super unicorn in the pet industry.
Lu Fenghai felt that the most correct thing he had done in his life was to accept the recommendation of angel investor Xu Xiaoming and join Zhang Yida after his entrepreneurial failure. He built Pate.com from scratch and now Pate Holdings Group .
The reputation of Pate Holdings Group is not as good as that of star companies such as Ruixiang and Yimin Wangjin, but it can be regarded as an established unicorn.
In the pet world, he is the undisputed overlord.
Last year, Lu Fenghai knew that Zhang Yida formed a Chinese-funded consortium to acquire Bayer Animal Health.
At the same time, he also knew that Bayer Animal Health would be integrated into the Pate Holdings system to create a unicorn with a market value of 100 billion.
But there has been no concrete action, so he can only worry on the sidelines.
However, there was one thing that reassured him a lot.
Bayer Animal Health’s medicines are constantly being put on the Pate.com mall, and the offline Pate Hospital shelves are also full of Bayer Animal Health medicines.
Pate Pharmaceuticals, a joint venture established with Beijing University Medical Group, a subsidiary of Beijing University Founder, is also continuously obtaining pharmaceutical authorization from Bayer Animal Health and researching some domestic generic drugs.
There are various signs that the day of merger is very close.
Today, it’s finally time to kick things off.
Zhang Yida, Shen Beipeng, and Zhang Sanshi had been chatting about the next actions, and he was listening quietly.
"Fenghai, show Mr. Shen and Mr. Zhang the achievements of Pate Holdings in recent years."
After chatting for a while, Zhang Yida felt that it was almost done and it was time to serve the main course.
Lu Fenghai nodded and began to show the PPT under the gazes of the three people.
"Pate Holdings currently has four major subsidiaries, the wholly-owned pet e-commerce brand Pate.com, the pet medical brand Pate Pet Hospital, the pet food brand Dogford with a 51% holding, and the Pate Medical holding 80% ."
Shen Beipeng and Zhang Sanshi looked at each other and nodded, recognizing the business layout of Pate Holdings.
Zhang Yida always had a faint smile on his face. After more than five years of planning, he finally ushered in the harvest moment.
Seeing that all three of them had no questions to ask, Lu Fenghai went on to introduce: "Pate.com's GMV in 2018 was 21.2 billion yuan, and this year it is expected to be between 28 billion and 30 billion yuan."
Lu Fenghai pulled up charts one after another. The monthly GMV was clearly marked on the bar chart, and there was a steep rising curve next to it.
Black Shirt Capital, the company behind Shen Beipeng, was originally a shareholder of Pate.com, and he had read the performance reports every year, so he was not surprised at this time.
Zhang Sanshi was different. He was slightly moved, and then suddenly realized: "It's strange. I heard that many pet sellers on Taobao and Tmall have gone to Pet.com to open stores. The rumors are true, haha!"
Lu Fenghai smiled modestly, "Fortunately, they have the size advantage to put it there, and vertical e-commerce companies cannot monopolize the sale of pet products.
We have launched mini programs on DouShi, Kuaishou, and Xiaohongshu, and put in a lot of short video advertising materials, which have now become a new performance growth point for Pet.com.
In addition, several live streaming platforms under Ruixiang have also connected with Pate.com, and live streaming is also our new focus.
There is also Pinduoduo, which has a strategic partnership with us, and Dogfud has opened a store in Pinduoduo.”
Zhang Sanshi glanced at Zhang Yida, he was really spending a lot of money!
Zhang Yida laughed and said, "We cooperate normally, we cooperate normally, and we will not miss a penny of what we should pay."
How dare Zhang Yida engage in insider trading? Ruixiang is so big and has so many eyes staring up and down.
However, Pate.com has indeed enjoyed a lot of benefits brought by Zhang Yida, the major shareholder. Even if other e-commerce platforms come with money, they cannot share the traffic of Ruixiang System.
Ruixiang Industrial Investment Fund has also invested in Pate Holdings, so it makes sense for the cooperation to be closer.
Lu Fenghai continued: "Pate Pet Hospital currently has 284 chain hospitals across the country, all located in first- and second-tier cities.
According to Dogfud, the revenue in 2018 was 3.25 billion and the net profit was 520 million."
Speaking of this, Lu Feng paused and added: "When we acquired Dogfud three years ago, we signed a gambling agreement.
Dogfud is required to achieve a net profit of no less than 1.14 billion in three years, and the bet has already been exceeded."
Shen Beipeng nodded, "This is a very cost-effective deal. We obtained 51% of Dogfud's shares at the cost of issuing an additional US$510 million in equity.
The continuous profits of Dogford greatly support the expansion plan of Pate Hospital."
Zhang Sanshi nodded slightly. He also knew about this. He also knew that Dogfud was originally Zhang Yida's family business and had been run by Zhang Yida's father, Zhang Qinghua.
"What's the situation with Pate Medical?"
Zhang Sanshi asked doubtfully, "Isn't Beijing University Medical Group a medical company?"
Zhang Yida explained aloud, "Jingda Medical Group is a sub-group of Founder, which in addition to hospitals also has pharmaceutical companies.
In fact, pets and people can share some medicines, so we are cooperating with them in this regard.
At that time, we hadn’t acquired Bayer Animal Health yet, so we just wanted to make up for our shortcomings in medicine.”
"Have any new drugs been developed?" Zhang Sanshi asked. This question is very critical. The most important thing for pharmaceutical groups is research and development capabilities.
If a new drug is developed, profits will really come rolling in.
Lu Fenghai shook his head, "After all, we are not specialized in veterinary drugs. We are mainly developing some alternative drugs. After being authorized by Bayer, we are copying some low-cost domestic veterinary drugs."
Zhang Sanshi also nodded with great understanding. Biomedical technology in China is indeed far behind the international first-class level.