Private equity firm Bain Capital agreed to acquire Mitsubishi Chemical Group’s pharmaceutical unit, adding to a dealmaking boom in Japan.
The deal values Mitsubishi Tanabe Pharma at about ¥510 billion ($3.3 billion), according to a statement on Friday. The transaction is expected to be completed in the third quarter, pending closing conditions and approvals from regulators and shareholders.
In a separate statement, Mitsubishi Chemical said it expects to book pre-tax income from discontinued operations of about ¥95 billion.
Founded in 1678 and based in the city of Osaka, Tanabe Pharma focuses on therapeutic areas such as immunology and inflammation, vaccines, diabetes, and central nervous system and metabolic disease. It employs more than 5,000 people globally.
"We believe there are promising signs for growth and untapped opportunities in Japan’s life sciences industry as government and regulators have launched several initiatives to accelerate the development and approval of innovative medicines,” said Ricky Sun, a Partner at Bain Capital Life Sciences.
Tanabe Pharma will continue to build on its legacy of medical innovation while boosting growth via business development, licensing, and strategic acquisitions, among other options, according to the statement.
Bain has been ramping up investment in Japan, a hive of dealmaking activity. The Boston-based firm is duking it out with KKR for Fuji Soft, with KKR once again raising its offer for the Japanese software company.
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