KKR to acquire Japanese CDMO Bushu Pharmaceuticals from BPEA EQT

American global investment company Kohlberg Kravis Roberts & Co (KKR) will acquire all shares of Bushu Pharmaceuticals from Asian private equity firm BPEA EQT for an undisclosed amount.

Post-closing, KKR intends to fast-track Bushu Pharmaceuticals’ growth and further establish the company as a major contract development and manufacturing organization (CDMO) in Japan and international pharmaceutical markets.

In addition, KKR intends to work together with Bushu Pharma’s management to foray into new and growing spaces and further expand expansion and quality control as well as explore opportunities for organic and inorganic growth of the company.

Japan-based Bushu Pharmaceuticals manufactures and processes healthcare products, including oral solid dosages and injectables as well as clinical trial materials.

Founded in 1998 as an independent pharmaceutical contract manufacturer, Bushu Pharmaceuticals also deals in pharmaceutical drug product contract manufacturing and packaging of clinical trials and commercial products.

Hiro Hirano — KKR Asia Pacific Private Equity Co-Head and KKR Japan CEO said: “By leveraging KKR’s deep experience in healthcare, tech, and supply chain solutions, we aim to help Bushu Pharma to further scale its best-in-class business and to drive growth and technical innovation that will ultimately benefit patients in Japan and around the world.”

KKR is financing the transaction through one of its Asia-focused investment funds.

Tadao Takano — Bushu Pharmaceuticals President and Chief Operating Officer said: “Bushu Pharma is pleased to welcome KKR as a new shareholder able to advance our company’s mission to deliver high-quality pharmaceutical products and solutions to patients in Japan and around the world.

“KKR brings to Bushu Pharma its deep knowledge of the pharmaceutical industry, its experience supporting global businesses in the sector, and its extensive investment experience in Japan.”

The acquisition is expected to be completed in Q1 2023, subject to customary approvals and closing conditions.

In 2014, Bushu Pharmaceuticals was acquired by BPEA EQT for approximately $650 million.