Carlyle Group to acquire Japanese pharma firm

23 June 2014   Category: News, Asia, Global, Japan, USA   By Daniel Shane

US private equity giant The Carlyle Group has entered into an agreement to acquire 100% of Japan’s Sunsho Pharmaceutical.

Financial details of the purchase of Shizuoka-based Sunsho, which specialises in contract manufacturing for the health and nutrition (H&N) sectors, were not disclosed. The deal is expected to close in August.

Sunsho currently has five factories across Shizuoka Prefecture with fully integrated production lines that provide contract manufacturing and packaging services for the H&N industry.

Following the close of the buy-out, Sunsho founder, chairman and chief executive officer Takashi Kondo will retire. President Kazuhiro Shijo and the rest of the current management team will remain in place.

“With its competitive edge in R&D and manufacturing capabilities, the company is poised for continued growth. We were impressed by Sunsho Pharmaceutical’s competitive positioning and growth potential, and have a strong appreciation of its management philosophy and culture,” commented Takaomi Tomioka, managing director, The Carlyle Group.

“We look forward to partnering with Sunsho Pharmaceutical’s talented management team, and to leveraging our global network and deep experience in the consumer and healthcare industries to support Sunsho Pharmaceutical’s business expansion and the further development of the H&N market in Japan.”

Equity for the deal will come from Carlyle Japan Partners III.

The Carlyle Group, which has approximately US$199 billion in AUM across 120 funds and 133 fund-of-funds as of March 31, has been investing in Japan since 2000.

The private equity firm has significant experience in investing in the health food and nutrition sectors. Four years ago it acquired NBTY, a global manufacturer and marketer of nutritional supplements, for $3.8 billion.