Houlihan Lokey Advises Bushu Pharmaceuticals

Houlihan Lokey is pleased to announce that Bushu Pharmaceuticals (Bushu) signed a binding agreement to acquire the Fukushima Pharmaceutical Manufacturing Operations (Fukushima Operations) of Sanwa Kagaku Kenkyusho (Sanwa), a wholly owned subsidiary of the Suzuken Group, and entered into an agreement for the supply of products currently being manufactured at the site. This transaction closed on September 1, 2022.

Bushu is a leading Japanese CDMO that produces and packages high-quality pharmaceuticals and medical devices with advanced quality control and supply chain management support. Founded in 1998 with roots in the manufacturing operations of Sandoz, and headquartered in Saitama, Japan, Bushu is a portfolio company of Baring Private Equity Asia (BPEA), a leading private equity firm in the Asia region with approximately $21 billion of AUM.

The target business is Sanwa’s production facility at Aizuwakamatsu, Fukushima, Japan. Completed in 1985, the facility produces tablets and oral jellies for Sanwa’s proprietary products, as well as engaging in contract manufacturing for leading Japanese third-party pharmaceutical companies. Sanwa belongs to Suzuken Group, one of the largest pharmaceutical distribution companies in Japan.

After carefully considering the future direction of its new drug development initiatives and the increasingly globalized sector environment, Sanwa concluded that divesting the Fukushima Operations to Bushu, which has advanced technological capabilities, production operations, and GMP certifications in many countries worldwide, was the best strategy for the seller and the target business.

By acquiring the Fukushima Operations, which are already capable of handling contracts from both domestic and overseas pharmaceutical manufacturers, Bushu can ensure sufficient manufacturing capacity to meet rapidly growing demand, while fulfilling its commitment to high-quality and stable supply.

It was announced in March 2022 that BPEA would soon join forces with EQT, a leading private equity firm in the Nordic region.

Houlihan Lokey served as the financial advisor to Bushu in relation to the purchase of the Fukushima Operations, and its conclusion of an agreement covering the supply of pharmaceutical products currently being manufactured at the site. This deal represents another successful transaction for Houlihan Lokey in the healthcare sector and for sponsor-backed assets.