Toho Holdings Seeks $1.3 Billion Acquisition of PHC Holdings

Toho Holdings Co., a Japanese pharmaceutical wholesaler, is negotiating the acquisition of medical device manufacturer PHC Holdings Corp. for more than 200 billion yen ($1.3 billion). Toho has submitted an initial proposal and is currently conducting due diligence on the target company.

The deal would allow KKR & Co., the largest shareholder in PHC with a roughly 38% stake, to exit its investment. PHC was formerly Panasonic Healthcare before KKR acquired an 80% stake in 2014 and subsequently took the company public in 2021. If the acquisition is completed, PHC would be delisted from the Tokyo stock exchange.

Toho is pursuing the move to expand its business into healthcare IT, diagnostic reagents, and medical devices. The company is facing pressure from activist investor 3D Investment Partners to increase investor returns and improve overall profitability.