Blackstone Makes $2.3 Billion Deal for Japan Drug Business
August 24 2020 - 8:08AM
Dow Jones News
By Kosaku Narioka
Blackstone Group Inc. is buying the consumer health-care
business of Japan's Takeda Pharmaceutical Co. for Yen242 billion
($2.3 billion), one of the larger private-equity acquisitions in a
country where such deals are slowly expanding.
Takeda has been pushing ahead with a plan to divest $10 billion
worth of assets to pay down debt it incurred from the $58 billion
acquisition of Shire PLC last year. The drugmaker has said it wants
to focus on prescription drugs.
Atsuhiko Sakamoto, head of private equity for Japan at New
York-based Blackstone, said it planned to invest in the business to
boost market share, add new products and expand in Asia outside
Japan. Blackstone hopes to list the business in Tokyo after putting
it on a growth path, he said.
The business includes energy tablets and other products that
generated more than Yen60 billion in revenue in the year ended
March 2020.
Mr. Sakamoto said he expected other Japanese drugmakers to
divest their over-the-counter businesses, and Blackstone would be
interested if they do.
Japan has seen more private-equity deal making in recent years.
A Bain Capital LLC-led consortium bought Toshiba Corp.'s
memory-chip unit for $18 billion in 2018. Earlier this year, a
group comprised of U.S. private-equity firm Lone Star Global
Acquisitions Ltd. and employees of Unizo Holdings Co. acquired
Unizo, a Japanese real-estate company, for $1.9 billion.
Mr. Sakamoto said Blackstone was interested in companies that
could reduce medical costs as Japan's population ages.
Over-the-counter medicines fit that description because they don't
require doctors' time, he said. Last year, Blackstone bought Ayumi
Pharmaceutical Corp., a Japanese maker of biopharmaceutical drugs
that are similar to but more affordable than previously approved
biologic medicines.
In general, Mr. Sakamoto said the coronavirus pandemic would be
a chance for new investments because it may lead some companies to
divest noncore businesses.
Blackstone has been active in the Japanese real-estate market as
well. Earlier this year, Blackstone agreed to pay more than Yen300
billion for a portfolio of 220 apartment buildings mostly in Tokyo
and Osaka, according to people familiar with the matter.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
August 24, 2020 07:53 ET (11:53 GMT)
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