Global investment firm Carlyle has agreed to sell its entire investment in Sunsho Pharmaceutical, a Japanese contract manufacturer of health and nutrition products, to Osaka-based Towa Pharmaceutical.
The financial details of the deal were not disclosed. Carlyle said in a statement that the transaction is expected to be completed in February next year.
Carlyle acquired a 100% stake in Sunsho Pharmaceutical in 2014 through Carlyle’s third Japan buyout fund, Carlyle Japan Partners III. During the holding period, the global investment firm said it has helped Sunsho Pharmaceutical strengthen its management structure and governance, launch a new factory and research and development facility, diversify its business portfolio, and bolster overseas expansion.
In the healthcare space, Carlyle invested more than $14.7 billion of equity in over 80 deals globally by the end of September 2021. Other healthcare investments in Japan include Qualicaps and Solasto Corporation.
The firm entered the Japanese market in 2000, and has made 31 investments in the country to date. The sale of Sunsho Pharmaceutical will be its 20th exit in the market.
In March 2021, Carlyle divested from enterprise output management and business intelligence software firm WingArc1st through an IPO on the Tokyo Stock Exchange.
In September, it acquired Japan Asia Group Limited’s wholly-owned subsidiaries, Kokusai Kogyo and JAG Energy, as well as advertising creative production company AOI TYO Holdings Inc.
The firm also appointed Chikatomo Hodo, former president and chairman of Accenture Japan, and Shiho Takano, former president and chairperson of L’Occitane Japan, as senior advisors to the Carlyle Japan advisory team this year.
Carlyle’s private equity business manages $161 billion in AUM, according to the firm’s website. It was recently said to seek between $8 billion and $10 billion for its sixth Asia flagship fund, Private Equity International reported.
In Asia, Carlyle manages five Asia buyout funds totalling $15.55 billion and two China funds. In 2018, the firm raised $6.6 billion for Asia Partners V, its biggest that time, exceeding a $5 billion target.
The fifth Asia vehicle delivered a 1.4x multiple and 24% IRR as of September 30, 2021, Carlyle’s third quarter financial results show.
Carlyle’s other Asian portfolio companies that went public this year include Chinese firms JD Logistics and express freight network ANE, which had their debut on the Hong Kong Stock Exchange in May and November, respectively.