Carlyle agrees $419m exit from Japan healthcare business

The private equity firm acquired Sunsho in 2014 via its third Japan fund, which closed the following year on JPY119.5 billion. The size of the transaction was not disclosed. It was a succession planning situation, with Carlyle facilitating the retirement of Sunsho's founder, chairman, and CEO.

Founded in 1993, Sunsho is a leading player in the health and nutrition segment in Japan. It has full-line manufacturing facilities in Shizuoka that produce soft capsules, seamless capsules, and other dosage forms. Sales reached JPY22.9 billion in 2020, up from JPY21.1 billion the previous year. Over the same period, net profit rose from JPY1.09 billion to JPY1.15 billion.

Carlyle claimed in a statement to have strengthened Sunsho's management structure and governance, opened a new factory and R&D facility, diversified the product portfolio and customer base, and significantly increased global revenues by expanding the business overseas.

Towa, a manufacturer of generic drugs with JPY154.9 billion in annual revenue, said in a filing that the acquisition contributed to its medium-term goals of entering new verticals within healthcare and pursuing overseas expansion. Health foods and supplements have been identified as a target area.

Carlyle is currently deploying its fourth Japan buyout fund, which closed on JPY258 billion in early 2020. The firm has made 31 investments in Japan since entering the market in 2000 and Sunsho will be its 20th exit. Previous investments in Japan's healthcare sector include Qualicaps and Solasto Corporation.

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• Topics
• North Asia
• Trade sale
• Healthcare
• Japan
• The Carlyle Group