InterChina Partners, the leading local premium & mid-market investment banking advisor based in China, is pleased to announce the divestment of Acorn International’s flagship brand Babaka to Cofoe Medical Technology Co., Ltd (“Cofoe Medial”). The transaction was completed on March 31^st 2022.

Acorn International has over two decades of direct marketing experience, focusing over the past several years on e-commerce, and was listed on New York Exchange until the end of January 2021. The company mainly focuses on leveraging its direct marketing history to its sell own brands and products through e-commerce channels. Babaka, an iconic household brand name in China, was acquired by Acorn International’s and became one of its proprietary portfolio companies. After several years of ecommerce and omnichannel repositioning, Babaka has consolidates as China’s number 1 posture corrector product, achieving best-selling product in the posture correction category on Tmall and becoming a leading health device brand on JD.

Cofoe Medical is a professional household medical device manufacturer and is listed on Shenzhen Stock Exchange. Cofoe has developed into a group enterprise integrating R&D, manufacturing, sales and after-service or medical equipment. It owns more than 121 patents and 70 medical device registration certificates over the world, and its products have been exported to more than 46 countries and districts.

Cofoe plans to define Babaka as a sub-brand of rehabilitation assistive products and cooperate with medical institutions to provide upgraded products. The Babaka iconic brand position and its current sales strategy will serve as a platform to boost its new phase in this fast-growing category.

“Acorn International is in the process of shifting its business focus and brand portfolio to areas where they can best utilize their global reach and brand expertise. While the Babaka brand still represents significant potential of growth, it no longer fits Acorn group’s strategic focus. The divestment represents the sale of one of our group’s legacy assets and is a significant step for us to enter an era for future growth in the Chinese Ecommerce E-Ecosystem”. Jake Fisch, CEO of Acorn says.

InterChina’s deal team includes Eduardo Morcillo, Managing Partner, and James Chen, Director.

“We are pleased assist Acorn International in this crucial strategic divestment project,” said Mr. Morcillo, Managing partner of InterChina. “After Acorn took over the Babaka business and revamped it into number one category player in China, this time-honored brand is a perfect platform for Cofoe to build on its future suite of healthcare products. With the divestment proceeds Acorn group can focus its management and operation effort to their new business areas in China’s ecommerce space”.

InterChina served as Acorn International’s financial advisor and provided comprehensive transaction advice, including preparation of information memorandum, identifying and approaching a comprehensive universe of potential buyers, both domestic and international groups, strategic and financial investors; soliciting non-binding offers; evaluating all bids; preparing the data room and negotiating all definitive agreements. The firm managed the whole transaction process and provided creative solutions to handle all the challenges across the deal closure.