The owners of Indonesian herbal medicine producer Deltomed Laboratories are exploring put options in a deal that could value the company at around $ 500 million, Bloomberg News reported.
The company is supported by the Rahardjo family and the investment company Saratoga Investama Sedaya.
Citing people familiar with the matter, Bloomberg reported that Saratoga Investama Sedaya and the Rahardjo family are working with an advisor on the potential divestment.
Deltomed Laboratories began operations in 1976 as a home-based industrial enterprise in Banjarmasin, South Kalimantan, producing herbal medicines named Pil Ampuh and Jamu Air Mancur among other initial products, according to its website. .
Purwanto Rahardjo bought the company in 1988 and moved its operations to Wonogiri, Central Java. He was replaced by his eldest son Mulyo Rahardjo in 1992.
The company is known for its flagship herbal products Antangin, which relieves nausea among other benefits, the herbal OB cough medicine and the immune booster Imugard.
The coronavirus pandemic has helped increase the popularity and international recognition of herbal medicines for maintaining wellness and treating disease. Saratoga, in its 2020 annual report, said Deltomed has been successful in increasing sales of Antangin through a growing awareness to maintain a healthy lifestyle during the pandemic.
Other traditional herbal producers in Indonesia include listed company Sido Muncul and private companies Jamu Borobudur, Jamu Jago, Jamu Iboe, according to media reports.