Deal underscores Mitsui’s long-term commitment to company alongside
partners KKR and Panasonic
TOKYO–(BUSINESS WIRE)–
Mitsui & Co., Ltd. (“Mitsui”), one of Japan’s largest diversified
corporations, and global investment firm KKR today announced the signing
of a definitive share purchase agreement for Panasonic Healthcare
Holdings (“PHCHD” or “Panasonic Healthcare”), a global provider of
healthcare devices. Under the agreement, Mitsui will acquire a 22% stake
in PHCHD for JPY54.1 billion (US$510 million).
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Mitsui will acquire its shares from KKR, which invested in PHCHD in 2014
from its pan-regional Asian Fund II. Following the completion of this
transaction, KKR will own approximately 58% of PHCHD, Mitsui
approximately 22%, and Panasonic Corporation approximately 20%.
PHCHD develops, manufactures, and sells healthcare devices, focusing on
blood glucose monitoring systems and strips for people with diabetes
through its subsidiary Panasonic Healthcare Co., Ltd. In January 2016,
PHCHD acquired Ascensia Diabetes Care (“Ascensia”), formerly the
diabetes care unit of Bayer Aktiengesellschaft, a leading provider of
diabetes care solutions to people with diabetes and healthcare
professionals in 125 countries around the world.
Hidehito Kotani, President of PHCHD, said, “Panasonic Healthcare strives
to be a global provider of innovative and customer-centric healthcare
devices to help and serve our customers and contribute to the well-being
of society. We believe that Mitsui’s expertise, experience and networks
in the healthcare business, especially in Asia, will help us grow
further and compete globally. We welcome Mitsui as a shareholder that
will help us in achieving our aims.”
PHCHD’s mission is to provide innovative technologies and accessible
health care solutions to patients worldwide. The Company continually
strengthens its focus on providing high-quality and life-enhancing
products to diabetes patients globally given the growing incidence of
the disease. According to the International Diabetes Federation, the
number of people living with diabetes is expected to increase from 420
million in 2015 to 640 million people in 2040, and an estimated 60% of
these people will live in emerging Asian countries.
Hiro Hirano, Member & CEO of KKR Japan, said, “Since 2014, we have
worked closely with Panasonic Healthcare’s strong management team to
grow the company and capture new opportunities at home and across
borders. There is still much that can be done, and we will continue to
support the company’s long-term growth. The partnership with Mitsui will
greatly enhance the global opportunities for PHCHD.”
Koji Nagatomi, Chief Operating Officer of Mitsui’s Healthcare & Service
Business Unit, said, “PHCHD manufactures and sells blood glucose
monitoring systems and other healthcare devices globally, and has
expanded its business operations as one of the world’s leading
manufacturers of medical equipment. By leveraging Mitsui’s network of
Asian healthcare organizations, we are confident of contributing to
accelerating PHCHD’s growth in collaboration with KKR and Panasonic. We
believe that this initiative will also contribute to the creation of
service structures that will enhance the convenience of treatment for
diabetes sufferers.”
The medical and health care industry has been a key focus area for
Mitsui, which has been actively investing in hospital and ancillary
businesses in Asia. Through this investment in PHCHD, Mitsui will be
able to collaborate with its existing investments in medical
institutions and its overseas customer base to promote and support the
sale of PHCHD’s medical devices and to strengthen the ability of medical
institutions to attract patients. In the emerging markets of Asia,
Mitsui aims to build a diabetes treatment service network matched to
occurrence of the disease, establishing an easy-to-use ecosystem for
patients.
KKR has been investing in Japan through its pan-regional private equity
funds since 2010. Japan has been and continues to be a key focus for KKR
in the region. To date, KKR has completed three acquisitions in the
market: Intelligence Ltd., a leading human resources services company;
PHCHD, the carve-out health care business of Panasonic Corporation; and
Pioneer DJ, the carve-out DJ equipment business of Pioneer Corporation.
The transaction is subject to customary approvals.
About Panasonic Healthcare Holdings Co., Ltd.
Incorporated
in 2014, Panasonic Healthcare Holdings Co., Ltd. (shareholder structure:
KKR 80%; Panasonic Corporation 20%) is involved in developing,
manufacturing, selling and servicing medical equipment and solutions
through its subsidiaries Panasonic Healthcare Co., Ltd. and Ascensia
Diabetes Care Holdings Co., Ltd. It seeks to strengthen its three core
businesses for In Vitro diagnostics devices, Medical IT and Laboratory
and Medical Support devices to contribute to the wellbeing of society by
creating new value propositions for all the people who wish for better
health. For further information on Panasonic Healthcare Holdings, please
visit http://www.panasonic-healthcare.com/global/phchd/.
President: Hidehito Kotani
Headquarters: Minato-ku, Tokyo, Japan
Incorporation:
2014
About KKR
KKR is a leading global investment firm that
manages investments across multiple asset classes including private
equity, energy, infrastructure, real estate, credit and hedge funds. KKR
aims to generate attractive investment returns by following a patient
and disciplined investment approach, employing world‐class people, and
driving growth and value creation at the asset level. KKR invests its
own capital alongside its partners’ capital and brings opportunities to
others through its capital markets business. References to KKR’s
investments may include the activities of its sponsored funds. For
additional information about KKR & Co. L.P. (NYSE:KKR), please visit
KKR’s website at www.kkr.com and
on Twitter @KKR_Co.
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For Panasonic Healthcare Holdings Co., Ltd. & KKR Japan
Ashton
Consulting
John Sunley, +81-3-5425-7220
jas@ashton.jp
or
Brendan
Jennings, +81-3-5425-7220
b.jennings@ashton.jp
or
For
KKR
KKR Asia Pacific
Anita Davis, +852 3692-7335
anita.davis@kkr.com
or
KKR
New York
Kristi Huller, +1 212-230-9722
kristi.huller@kkr.com
Source: KKR & Co. L.P.