The Blackstone Group (NYSE: BX) and its affiliates agreed to acquire Takeda Consumer Healthcare Company Limited (TCHC) for JPY 242 billion or $2.3 billion.

On Wednesday, Blackstone announced that it entered into a definitive agreement with Takeda Pharmaceutical Company Limited, the parent company of TCHC, a leading provider of over-the-counter medicines in Japan.

TCHC’s portfolio of over-the-counter medicines and health products generated total revenues of JPY 60 billion or $565.45 million in the fiscal year 2019. For more than 66 years its flagship products, the Alinamin vitamin tablets and drinks and Benza, a cold remedy, have been top-sellers in Japan.

Blackstone sees great potential for TCHC

In a statement, Atsuhiko Sakamoto, Head of Private Equity in Blackstone Japan, said, “We are privileged to announce this partnership and invest in the company’s plans to become the leading consumer healthcare business in Japan.”

Sakamoto said Blackstone sees “tremendous potential for TCHC in Japan and throughout Asia” and believes it is “well-positioned to expand its established brands, launch new and expanded product offerings.”

“We are confident that Blackstone’s global network and expertise in the sector can accelerate TCHC’s growth,” said Sakamoto.

On the other hand, Takeda President and CEO Christopher Weber commented, “Today’s transaction will provide TCHC with the ownership, resources and strategic focus to continue to thrive and meet the needs of customers, while further sharpening Takeda’s strategic focus and commitment to financial discipline and transforming science into life-changing medicines.”

Weber explained that Takeda is divesting TCHC because its growth strategy is now focused on Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology, and Neuroscience.

“We are confident that under Blackstone, TCHC will be well-positioned to continue growing and developing its product offerings in the years to come to address the evolving needs of consumers,” said Weber.

Meanwhile, TCHC Chairman Miano Furuta said, “We believe the active and strategic investment by Blackstone will enable TCHC to maximize its potential. Blackstone is one of the world’s leading investment firms and has rich experience in the healthcare sector.”

TCHC is the second acquisition of Blackstone in Japan’s healthcare sector. In 2019, the private equity alternative investment management and financial services firm acquired Ayumi Pharmaceuticals.

Blackstone and Takeda are expecting to complete the transaction by end of March 2021.

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