Carlyle Launches Tender Offer for Japanese Medical Firm Hogy Medical

Tokyo – Mergers and Acquisitions

The Carlyle Group, a U.S. investment management firm, has announced a tender offer to acquire Japanese medical products company Hogy Medical in a latest private equity-led acquisition in the Japanese market.

Carlyle has offered 6,700 yen per share (approximately $43), according to a statement released on Wednesday, valuing the company at nearly $951 million based on recent closing prices.

Agreement with Key Shareholders

Carlyle indicated it has reached pre-agreements with several prominent shareholders in Hogy Medical, including activist investor Dalton Investments, enhancing the likelihood of the offer's success. The acceptance period for the offer is set to begin on Thursday and will continue until February 5.

Prior to the announcement, Hogy Medical's shares closed at 6,560 yen, suggesting that Carlyle's offer includes a premium to attract shareholders.

Acquisition Race in Japan

This deal follows reports earlier this month that Carlyle has outpaced other private equity competitors in the acquisition race for the Japanese company, amid growing interest in healthcare and industrial assets in Japan.

Japan has seen notable activity in merger and acquisition deals this year, particularly those led by global investment funds, driven by governance reforms, declining valuations of some companies, and pressures from activist shareholders.

About the Target Company

Hogy Medical specializes in the manufacturing and supply of medical products including:

• Medical masks
• Surgical gowns
• Sterilization containers for surgical instruments

Dalton Investments holds a 15.2% stake in the company and has previously called for exploring privatization options and enhancing governance by appointing independent board members.

Carlyle's Previous Experience in Healthcare

Carlyle has a previous investment record in the Japanese healthcare sector, having invested in companies like Qualicaps and Solasto, reflecting a long-term strategy focused on stable cash flow healthcare assets.

Investment Insight

This deal reflects a growing appetite among private equity funds for Japanese assets, particularly in defensive sectors like healthcare, where privatization is seen as a means to improve operational efficiency and enhance value over the medium to long term.