EQT BPEA V Fund to exit from Bushu Pharmaceuticals, one of the leading CDMOs in Japan

EQT BPEA V Fund to exit from Bushu Pharmaceuticals, one of the leading CDMOs in Japan

(PRESS RELEASE) STOCKHOLM, 20-Dec-2022 — /EuropaWire/ — EQT, a purpose-driven global investment organization, has announced that its BPEA V Fund will divest Bushu Pharmaceuticals, a leading CMO in Japan that produces high-quality pharmaceutical and medical devices, by selling it to KKR (Kohlberg Kravis Roberts & Co.), an American global investment firm.

Founded in 1998, Bushu is a leading pharmaceutical CDMO (Contract Development and Manufacturing Organization) and manufacturer of high-quality pharmaceutical and medical devices with advanced quality control and supply chain management support.

Headquartered in Kawagoe, Japan and with four manufacturing facilities across the country, Bushu serves both domestic and multinational pharmaceutical customers with manufacturing and packaging processes for a large variety of solid dosage products, injectables and filled vials, as well as clinical trial supplies. The Company has a wide range of loyal customers in the Japanese pharmaceutical market, well known for its high-quality standards, andit enjoys increasing outsourcing demand from Japanese and foreign pharmaceutical companies.

Since it was acquired by BPEA EQT (formerly BPEA) in December 2014, Bushu has solidified its capabilities to serve its growing customer base of global pharmaceutical companies. BPEA EQT supported the launch of the Company’s “Gateway-to-Asia” strategy, which allows international pharma companies to import bulk products into Japan for quality inspection, labeling, packaging, and distribution both within Japan and across other markets in Asia.

In 2022, Bushu acquired a factory from Sanwa Kagaku Kenkyusho with the capacity to handle contracts from both major domestic and foreign pharmaceutical manufacturers. Under BPEA EQT’s tenure, Bushu’s employee base has nearly doubled to a total of around 1,600. Additionally, the Company’s net revenue has grown by approximately 70 percent and its EBITDA increased by 50 percent.

Tadashi Maruoka, Partner within BPEA EQT’s Investment Advisory team, commented “We are proud of Bushu Pharmaceuticals’ development journey over our investment period. The company has grown to become one of the leading CDMOs in Japan today. We would like to thank Bushu’s Chairman of the Board Mr. Wes Wheeler and the highly esteemed management team led by CEO Mr. Tetsuichi Okada, President and COO Mr. Tadao Takano, CFO and CHRO Mr. Tetsuya Morikawa and all its employees for their hard work, collaboration and achievements”.

Tadao Takano, President and COO of Bushu Pharmaceuticals, commented “Over the past years, Bushu not only achieved impressive growth but also built a solid foundation to meet the rapidly growing demand as a CDMO and to play a greater role in the stable supply of pharmaceutical products throughout Japan and Asian countries. On behalf of the Bushu management team and all employees, I would like to thank BPEA EQT for its constructive and supportive partnership, which our whole team truly enjoyed.”

The transaction is subject to customary conditions and approvals and is expected to close in Q1 2023.

JP Morgan acted as exclusive financial advisor to BPEA EQT on the transaction.

Contact
Global: EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
Japan: Kekst CNC, eqt.japan@kekstcnc.com, +81 3 5156 0187

About BPEA EQT
BPEA EQT is part of EQT, a purpose-driven global investment organization in active ownership strategies. BPEA EQT combines the private equity teams from Baring Private Equity Asia (BPEA) and EQT Asia, creating a comprehensive Asian private equity presence with local teams in eight cities across the region, a 25-year heritage, and more than USD 25 billion of capital deployed since inception. In addition to BPEA EQT, EQT’s strategies in the region include EQT Infrastructure and the real estate division EQT Exeter.

More info: www.eqtgroup.com/private-capital/bpea-eqt
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About Bushu Pharmaceuticals
Drawing on its experience and knowledge as a CDMO it has cultivated over 20 years, Bushu Pharma manufactures solid preparations, solid preparation primary packaging, injection manufacturing, and injection packaging not only for domestic pharmaceuticals but also for global pharmaceutical manufacturers. Bushu Pharma is capable of providing a wide range of products and services — from clinical trial supplies to commercial product development support to commercialization — and has numerous manufacturing facilities and technologies.

From project start to approval, Bushu Pharma is a leading domestic contract manufacturing company that can provide optimal solutions such as technology transfer, production, packaging, and logistics in Japan.

More info: https://www.bushu-pharma.com

SOURCE: EQT AB