KKR To Buy Panasonic Healthcare For $1.67 Bln

(RTTNews) - Private-equity giant Kohlberg Kravis Roberts & Co. L.P. (KKR) Friday said it has agreed to acquire Healthcare unit of Japanese consumer electronics giant Panasonic Corp. (PC) for an equity value of about 165 billion yen or about $1.67 billion.

Panasonic Healthcare is a comprehensive healthcare company focusing on three core businesses: In Vitro Diagnostics, Medicom, and Biomedical. KKR said the companies will leverage their respective business resources, and aim for further growth of Panasonic Healthcare.

As per the agreement, PHC Holdings Co, Ltd., or PHCHD, wholly-owned by KKR investment funds, will purchase all outstanding shares of Panasonic Healthcare, including its related intellectual property and assets.

KKR noted that the transaction will be followed by a third party share allocation by PHCHD, after which KKR will own 80 percent of outstanding shares of PHCHD and Panasonic will own 20 percent.

Commenting on the agreements, KKR's Co-Founder and Co-CEO Henry Kravis said, "Panasonic Healthcare has excellent market positions and high-level technical capabilities, and we believe it has significant growth potential."

Panasonic and KKR will cooperate in the management of Panasonic Healthcare.

Panasonic Healthcare's in vitro Diagnostics business manufacture and sells blood glucose monitoring meters and sensors for diabetics. Its Medicom business has the top share in Japan in medical receipt computers, electronic health record systems and other IT equipment for medical clinics.

Meanwhile, Biomedical business overseas in biomedical laboratory equipment including CO2 incubators and ultra-low temperature freezers.

Panasonic President, Kazuhiro Tsuga stated, "As previously announced in Panasonic's New Midterm Management Plan, we have been seeking a partner who shares our vision for achieving a step change in the growth and evolution of Panasonic Healthcare."

The above agreements are expected to be completed by the end of March 2014, subject to approval by the relevant authorities and other customary closing conditions, KKR said.

KKR closed Thursday's regular trading at $20.60 on the NYSE.