Private Equity Firms Weigh $3.2 Billion Kobayashi Pharmaceutical Buyout

Kobayashi Pharmaceutical is considering a buyout offer exceeding 500 billion yen ($3.2 billion) from private equity investors. CVC Capital Partners and Nippon Sangyo Suishin Kiko are weighing a bid to take the Japanese health products company private, a deal that may also include participation from the company's founding family.

The potential acquisition follows a supplement contamination scandal in early 2024 involving suspected deaths. The incident caused the company's shares to languish, leaving them approximately 13% below pre-incident levels.

As of Thursday's close in Tokyo, the company's market capitalization stood at around 460 billion yen. While the exact premium for shareholders remains undecided, investors expect a payout above the current market value.