Takeda to sell drug subsidiary to Blackstone Group for $2.3 billion

Takeda Pharmaceutical Co. has agreed to sell its Japanese consumer healthcare business to US private equity firm The Blackstone Group for $2.3 billion.



Looks like Takeda’s $10 billion divestment plan might bring sweet returns sooner than expected. The Japanese pharmaceutical company is in final talks to sell its domestic consumer health business to U.S.-based private equity firm The Blackstone Group.

According to people familiar with the matter, Takeda will get between JPY250 billion ($2.37 billion) and JPY300 billion ($2.85 billion) from the speculated acquisition. It’s worth noting that the unit’s previously speculated worth was worth of JPY400 billion.

Takeda Pharmaceutical The Blackstone Group TCHC

People visit Takeda Japanese pharmaceutical company booth at XV National Congress of Cardiologists in Olympiyskiy Center.

Takeda Pharmaceutical has been aggressively pushing ahead with a divestment plan for $10 billion worth of assets to pay down debt it accrued from the $58 billion acquisition of Shire PLC in 2019. The Japanese drugmaker said it wants to focus on prescription drugs.

Takeda Pharmaceutical sells subsidiary to Blackstone

Oscar A-Co KK, a company controlled by funds managed by Blackstone and its affiliates, has signed an agreement to acquire Takeda’s wholly-owned subsidiary Takeda Consumer Healthcare Company (TCHC).

According to Atsuhiko Sakamoto, head of private equity for Japan at New York-based Blackstone, the private equity firm planned to invest in the business to boost maker share, introduce new products and expand in Asia outside Japan. It hopes to list the business in Tokyo after creating a solid growth plan.

As per the terms of the deal, Blackstone will acquire a range of over-the-counter medicines and health products from TCHC. These products generated total revenues of more than $566 million in the fiscal year ended in March 2020.

Japan has become a popular private-equity deal destination in recent years. In 2018, Toshiba Corp.’s memory-chip unit was bought by a Brain Capital LLC-led consortium for $18 billion. In April, 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.

Blackstone Group was window shopping for Japanese pharmaceutical companies before it settled for Takeda Pharmaceuticals. The private-equity firm is interested in diving companies that could reduce medical expenses as Japan’s population ages. In 2019, Blackstone bought Ayumi Pharmaceutical Corp., which makes anti-rheumatic drugs and orthopedics that are similar to but are more affordable than previously approved biological medicines.

Sakamoto said the COVID-19 pandemic would be an opportunity to explore new investments because it may lead to companies to divest noncore businesses.

Blackstone was among several rumored final bidders of Takeda’s Japan OTC franchise, along with local consumer health giant Taisho Pharmaceutical and private equity firms CVC Capital Partners and Bain Capital.

Blackstone is currently in talks with American private equity investor KKR to raise $1 billion that would help support The Serum Institute of India manufacture five external COVID-19 vaccine candidates.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Leave a Reply

Your email address will not be published.

Recent Posts

Electric Vehicle Maker Polestar SPAC Goes Public on Nasdaq

Electric Vehicle Maker Polestar SPAC Goes Public on Nasdaq

Experts believe that although EV stocks initially benefited from the optimism prevalent in the market, supply chain issues and high prices have put a dampener on demand for electri
22 hours ago
NASA Set To Unveil The Deepest Image Of The Universe

NASA Set To Unveil The Deepest Image Of The Universe

Thomas Zurbuchen revealed that seeing the deepest image of the universe for the first time will be akin to witnessing nature “giving up secrets that have been there for many, man
2 days ago
SEC Fines Ernst & Young $100 Million Over CPA Cheating Scandal

SEC Fines Ernst & Young $100 Million Over CPA Cheating Scandal

The SEC said that EY had earlier been intimated about the potential of staff cheating on accountant exams by an employee. Furthermore, even after an internal EY investigation confi
2 days ago
A Google Analytics Ban Sweeps Across the EU

A Google Analytics Ban Sweeps Across the EU

The decision came after careful consideration of several complaints by the Austrian NGO noyb. The NGO filed nearly 101 complaints with all EU data protection authorities.
3 days ago
It’s Time. To Ban TikTok, Says US FCC Commissioner

It’s Time. To Ban TikTok, Says US FCC Commissioner

For years, TikTok has continued to assure authorities that data collected from US users is stored in the US, and not China as many believe. A recent Buzzfeed report set fire to the
3 days ago
Tesla Shuts San Mateo Office Laying Off 200 Employees

Tesla Shuts San Mateo Office Laying Off 200 Employees

The billionaire entrepreneur had previously commented on reducing the salaried workforce at Tesla. Out of nearly 100,000 Tesla employees worldwide, 42% are based out of the United
4 days ago