MBK Partners to acquire Japanese pharmaceutical firm from Blackstone

Product image of Alinamin Pharmaceutical

MBK Partners, one of the largest private equity firms focusing on East Asia, will acquire Alinamin Pharmaceutical, a Japanese supplement maker, from U.S.-headquartered investment giant Blackstone for around 3 trillion won ($2.1 billion), industry sources said.

Investment banking sources told The Korea Times that MBK Partners is slated to sign a stock purchase agreement (SPA) with Blackstone in the U.S. on Wednesday, local time.

MBK Partners' acquisition of the Japanese drug maker illustrates the private equity firm's strategic focus on enhancing its investment portfolio in the health care sector, which it sees as a pivotal opportunity amid an aging population in the region.

The East Asia-focused private equity firm has made it clear in its previous annual letters to investors that it views aging as a major demographic trend in Northeast Asia including Korea, Japan and China, and has been seeking opportunities through active acquisitions in the sector.

Earlier this month, MBK Partners participated in preliminary bidding for the sale of the Japanese pharmaceutical company, alongside other global private equity firms, reportedly including CVC Capital and EQT Partners.

In 2020, Blackstone acquired Japan's Takeda Consumer Healthcare Company Limited — which was later renamed Alinamin Pharmaceutical — from its parent company Takeda Pharmaceutical for around 242 billion Japanese yen. The company is now calculated at around $1.49 billion, or about 2 trillion Korean won.

A leading provider of over-the-counter medicines in Japan for over six decades, the company's flagship vitamin drug Alinamin, has been a staple product in Japanese households.

The investment banking industry sees MBK's acquisition as aiming to target not only the local markets in Japan, but also the potential to expand into overseas markets.

The Japanese supplement maker has posted a rapid level of growth through additional mergers and acquisitions since it was taken over by Blackstone four years ago.

This year alone, MBK Partners has closed two deals worth billions of dollars in the health care sector with Blackstone. In April, MBK Partners signed an SPA with the U.S. investment firm to acquire Geo-Young, the largest pharmaceutical wholesaler in Korea.

Last year, the private equity firm acquired dental scanner solution provider Medit and dental implant company Osstem Implant, strengthening its health care-focused investment portfolio.