Lupin offloads Japanese subsidiary for $526 million

Nov. 12, 2019

Lupin Limited's board of directors approved and the company have signed a definitive agreement for the sale of its stake in its Japanese subsidiary Kyowa Pharmaceutical Industry to private equity fund Unison.

Under the terms of the agreement, Lupin’s subsidiary Nanomi B.V. will divest its entire 99.82% stake in Kyowa to Unison’s entity Plutus Ltd. for an enterprise value of ¥57,361 million, subject to closing adjustments. The divested business recorded revenues of ¥14,241 million in H1, FY 2020 (¥28,335 million in FY 2019).

The proposed transaction values Kyowa at an enterprise value of ¥57,361 million and will generate post tax net cash inflow of approximately ¥32,596 million. According to Lupin, the transaction is expected to be EPS accretive and will significantly strengthen the consolidated balance sheet of the company. 

"This transaction will build upon the strong foundation our team has established in Japan," said Vinita Gupta, CEO, Lupin. "We acquired Kyowa in 2007 and since then have made a material difference to the Japanese healthcare system with the affordable medicines we brought to market. This transaction is aligned with our vision to focus on our key markets and strategic priorities to achieve sustainable growth in the mid to long-term. The deal proceeds will be utilized to strengthen Lupin’s balance sheet as well as provide growth capital to support organic and inorganic initiatives for our focus markets."

Nomura International (Hong Kong) Limited is the sole financial adviser to Lupin for the proposed transaction.

Read the full Lupin release