Panasonic (NYSE:PC) and private equity giant Kohlberg Kravis Roberts said they inked a deal for the acquisition of 80% of Panasonic Healthcare for $1.67 billion.
Panasonic will retain a 20% interest if the deal closes as expected next March, according to a press release. The companies said the plan to "leverage their respective business resources" to grow the business.
Panasonic Healthcare has 3 core businesses: A diagnostics business that specializes in blood glucose monitoring meters and sensors for diabetes; an electronic medical record business called Medicom for Japanese healthcare providers; and a biomedical lab equipment business, according to the release.
Panasonic president Kazuhiro Tsuga, said in prepared remarks that the company was seeking a partner "who shares our vision for achieving a step change in the growth and evolution of Panasonic Healthcare."
"We understand KKR has been actively investing in the expanding healthcare sector, and we highly respect KKR’s industry expertise and its capability to provide the necessary growth capital and operational know-how, in preparation for the future development of Panasonic Healthcare in the global healthcare industry. Through our partnership, Panasonic will work with KKR to support the growth of Panasonic Healthcare, which will continue to be a member of the Panasonic Group. At the same time, we believe that partnering with KKR will also allow us to learn from KKR’s global operational and business management expertise as we pursue the next stage in growth for Panasonic," Tsuga said.
"Panasonic Healthcare has excellent market positions and high-level technical capabilities, and we believe it has significant growth potential. Panasonic Healthcare’s experienced management team and employees, our equity partner Panasonic, and KKR all share a common goal of working together as partners over the long term to support further growth of Panasonic Healthcare. Japan is a very important and attractive market for KKR, and our experienced team on the ground in Japan looks forward to leveraging KKR’s global expertise and experience to make this a highly successful partnership," added KKR co-founder and co-CEO Henry Kravis.