CVC Capital Partners to Acquire Japan’s Sogo Medical Group for $1.2bn

Private equity firm CVC Capital Partners has finalized a deal to acquire Sogo Medical Group, Japan’s fifth-largest pharmacy chain, from Polaris Capital Group for approximately $1.2bn.

This acquisition marks a significant move in the Japanese pharmaceutical market and presents a potential opportunity for CVC to expand and re-list the company in the foreseeable future.

Polaris Capital Group, a Tokyo-based private equity fund, had taken Sogo Medical private in a management buyout worth nearly $850m  just last year. However, the decision to sell the company to CVC indicates the potential for greater growth and market value to be realized under new ownership.

CVC has expressed its intention to pursue an aggressive strategy of expansion through mergers and acquisitions, with the ultimate goal of relisting Sogo Medical on the Japanese stock market. By leveraging its expertise and resources, CVC aims to position the pharmacy chain for further success and capitalize on the lucrative pharmaceutical sector in Japan.

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The acquisition aligns with a broader trend of private equity firms taking an interest in the healthcare industry. With the ongoing COVID-19 pandemic highlighting the critical importance of healthcare infrastructure, pharmaceutical companies have become attractive targets for investment. CVC’s acquisition of Sogo Medical reflects the confidence in the Japanese healthcare market and its potential for future growth.

Overall, the acquisition of Sogo Medical Group by CVC Capital Partners represents a significant milestone in the Japanese pharmaceutical industry. The deal will provide a fresh perspective and new growth opportunities for Sogo Medical, positioning it for future success in a rapidly evolving market.

Source: Express Healthcare Management

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