Japan's Unison to buy drugmaker Showa Yakuhin from Tokio Marine

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Japanese private equity firm Unison Capital on Wednesday agreed to buy a Japanese drugmaker Showa Yakuhin Kako from a domestic rival Tokio Marine Capital, its third buyout in six months.

Unison Capital said in a statement that it would buy Showa Yakuhin with GC Corp, a Japanese maker of dental care materials, and that they would manage the company together. It did not disclose the purchase price.

Tokio Marine Capital, which owns 50 percent in Showa Yakuhin, put up the company for sale last year.

Bidders included Mylan Inc, one of the world's largest generic drugmakers, U.S. private equity firm KKR which teamed up with Japan's healthcare product maker Lion Corp , and TPG Capital, sources have told Reuters previously.

Tokio Marine Capital, an affiliate of Tokio Marine Holdings , owns 50 percent of Showa Yakuhin, while Japanese private equity firm Polaris Capital Group holds 23 PineBridge Investments also has 23 percent.

For Tokio Marine, this is the second exit of assets invested from the fund it set up in 2005, its third fund. In November Tokio Marine sold its 60 percent stake in Miki Shoko, which sells children's' apparel, to a group of textile makers including Nisshinbo Holdings.

Unison, which manages one of the largest private equity funds in Japan, in November bought a shoe repair company Minit Asia Pacific Co from CVC Capital Asia.

It also bought Asahi Tec, a maker of iron castings used in automobiles, from Belgian private equity firm RHJ International .

Showa Yakuhin was previously owned by Jafco Co, a Japanese venture capital and buyout firm. It bought the company for 25.2 billion yen ($316 million), according to its website, in one of the largest transactions of 2004.

Japan's Mercian Corp and Ajinomoto Co were among the stockholders who tendered their shares to Jafco.

This article is copyrighted by Reuters

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