Health and Science

Takeda to sell Japan consumer health unit valued at $2.3 billion to Blackstone

Key Points
  • Takeda Pharmaceutical has agreed to sell its Japanese consumer health-care business to U.S. investment fund Blackstone.
  • Takeda Consumer Healthcare Company, which makes over-the-counter  drugs and health products, is valued at 242 billion yen ($2.29 billion).
  • The sale price will be determined after calculating its debt and other factors, Takeda said.
A pedestrian walks past the Takeda Pharmaceutical headquarters on January 7, 2019 in Tokyo, Japan.
Tomohiro Ohsumi | Getty Images

Takeda Pharmaceutical said on Monday it has agreed to sell its Japanese consumer health-care business to U.S. investment fund Blackstone.

Takeda Consumer Healthcare Company, which makes over-the-counter (OTC) drugs and health products, is valued at 242 billion yen ($2.29 billion) and the sale price will be determined after calculating its debt and other factors, Takeda said.

Japan's largest pharmaceuticals company has been reducing its OTC assets worldwide as it seeks to refocus its business and reduce debt following its $59 billion acquisition of Shire.

Blackstone was among the final bidders for the OTC unit, Reuters reported in June, along with Bain Capital, CVC Capital Partners and Taisho Pharmaceutical.

Takeda said proceeds from the sale would boost its net profit by 105 billion yen. The transaction is expected close by March 31, subject to regulatory closing conditions, it said.

The deal follows Blackstone's acquisition of Japan's Ayumi Pharmaceutical for $1 billion in March 2019.