Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Exclusive: Blackstone, Taisho Pharma among final bidders for Takeda's Japan OTC unit - sources

Stock MarketsJun 19, 2020 07:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange

By Junko Fujita and Rocky Swift

TOKYO (Reuters) - Blackstone, Bain Capital and Taisho Pharmaceutical are among the final bidders for Takeda Pharmaceutical's (T:4502) consumer drug business in Japan, a deal that could be worth up to 400 billion yen (£3 billion), three people familiar with the deal said.

Japan's Taisho Pharmaceutical Holdings Co Ltd (T:4581) is the front runner for the deal, all three people said. CVC Capital Partners is also among the final bidders, they said.

The sale of Takeda Consumer Healthcare Co, known for its Alinamin line of energy drinks, is part of Takeda's efforts to shed $10 billion in non-core assets to reduce debt following its $59 billion purchase of Shire Plc (LON:SHP).

That deal amount might fall to around 340 billion yen because Blackstone Group (N:BX) and the private equity firms consider the price too high, said two of those people. Taisho could go as high as 400 billion yen, they said.

Blackstone, Takeda, Taisho and Bain declined to comment. CVC was not immediately available for comment.

The price Takeda is seeking for the over-the-counter business is about 20 times EBITDA, or earnings before taxes depreciation and amortisation, said the three people. The company will close the third, and likely final, bid on Monday, they said.

The sources declined to be identified because the bidding process is private.

Shortly before the Shire deal closed in 2019, Takeda Chief Executive Christophe Weber said it was unlikely the drugmaker would offload its over-the-counter (OTC) business. But as major divestitures slowed, reaching $7.7 billion through May, the company has focused on ridding itself of non-prescription drug products, with Weber saying "we are not an OTC company."

The Japan OTC deal is separate from the deals Takeda has struck for two other OTC units.

On June 11, Takeda said it would sell OTC assets in the Asia Pacific region to South Korea's Celltrion (KS:068270) for $278 million. In April, it said it would offload European OTC and prescription products to Denmark-based Orifarm Group for about $670 million.

"We view the Japan consumer healthcare business in the same light as Takeda's ongoing divestiture of global OTC assets," said Morningstar analyst Jay Lee.

"It works towards the company's goal of paying down debt and also allows management to focus on Takeda's core business areas."

Exclusive: Blackstone, Taisho Pharma among final bidders for Takeda's Japan OTC unit - sources

Related Articles

Autodesk Reports Q1 Beat, Provides Outlook
Autodesk Reports Q1 Beat, Provides Outlook By - May 26, 2022

By Davit Kirakosyan Autodesk (NASDAQ:ADSK) reported its Q1 results, with EPS of $1.43 coming in better than the Street estimate of $1.35. Revenue increased 18% year-over-year to...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email