BY Fraser Tennant
In a deal valued at $2.3bn, Japanese multinational Takeda Pharmaceutical Company Limited has sold its consumer healthcare business – Takeda Consumer Healthcare Company Limited (TCHC) – to US investment firm Blackstone.
Under the terms of the definitive agreement, Blackstone and its affiliates will acquire a variety of over-the-counter medicines and health products from TCHC – products which generated total revenues of more than $566m in 2019.
Following the divestment of TCHC, Takeda Pharmaceutical Company Limited has said it will focus on developing drugs for unmet medical needs and rare diseases.
“Throughout the decades, TCHC’s brands including Alinamin have earned the trust and confidence of consumers in Japan,” said Milano Furuta, chairman of the board at TCHC. “We believe the active and strategic investment by Blackstone will enable TCHC to maximise its potential. Blackstone is one of the world’s leading investment firms and has rich experience in the healthcare sector, and we are confident this will help TCHC further develop its products and brands and strengthen the business overall.”
TCHC’s flagship vitamin drug Alinamin has been a staple product in Japanese households for Almost 70 years. In addition to Alinamin vitamin tablets and drinks, TCHC offers a platform of other over-the-counter products, including Benza Block, a leading symptom based cold remedy.
“We are privileged to announce this partnership and invest in the company’s plans to become the leading consumer healthcare business in Japan,” said Atsuhiko Sakamoto, head of private equity at Blackstone Japan. “TCHC is well-positioned to grow its established brands in Japan and launch new and expanded product offerings.”
One of the world’s leading investment firms, Blackstone’s assets under management (AUM) total $564bn. The deal to buy TCHC is Blackstone’s second private equity transaction in Japan’s healthcare sector following the acquisition of AYUMI Pharmaceutical in 2019.
Acting as exclusive financial adviser to Blackstone is Mitsubishi UFJ Morgan Stanley Securities, while Simpson Thacher & Bartlett LLP and Anderson Mori & Tomotsune are acting as legal advisers.
Mr Sakamoto concluded: “We see tremendous potential for TCHC in Japan and throughout Asia, and we are confident that Blackstone’s global network and expertise in the sector can accelerate TCHC’s growth.”
News: Takeda to sell Japan consumer health unit valued at $2.3 billion to Blackstone