KKR Nears Deal to Buy Japanese Medical Gear Maker Topcon: Reports

The development comes amid a surge in leveraged buyouts in Japan, driven by corporate governance reforms, increased shareholder activism, and a weakening yen.

US investment firm KKR is reportedly nearing a deal to acquire Topcon Corporation, a Tokyo-based medical equipment manufacturer.

The development comes amid a surge in leveraged buyouts in Japan, driven by corporate governance reforms, increased shareholder activism, and a weakening yen.

Following the report, Topcon, which has a market capitalization of approximately $2 billion, saw its stock close nearly 7% higher in Tokyo.

As per sources, the private equity firm has not yet finalized an agreement on the transaction size. However, if successful, discussions could lead to a deal in the coming days. Both KKR and Topcon declined to comment on the matter.

Data from LSEG indicates that activist investors ValueAct Capital and Oasis Management Company are among Topcon’s largest shareholders, holding approximately 14% and 11% of the company, respectively.

Topcon has been considering a sale with assistance from its advisers, while several private equity firms have submitted bids to take the company private.

Founded in 1932, Tokyo-based Topcon specializes in eyecare, smart infrastructure, and positioning products. Previously, Toshiba held a 30% stake in Topcon but divested its shares entirely in 2015.

In its latest quarterly earnings report, Topcon projected a group operating profit of 7 billion yen ($46.51 million) and total sales of 211 billion yen for the fiscal year ending March 31.

Recently, KKR signed a Memorandum of Understanding (MoU) with FUJI SOFT’s founding family, outlining plans to take the company private through a full acquisition.

As part of the agreement, FK Co., a company owned by KKR-managed funds, will carry out a share consolidation process, ultimately making FK and NFC the sole shareholders of FUJI SOFT.

In a similar development, several major players, including Singapore’s Temasek, Manipal Hospitals, Malaysia’s IHH Healthcare, Swedish private equity firm EQT, and US-based KKR, have expressed preliminary interest in acquiring Sahyadri Hospitals.

The potential deal, estimated at around INR 3,500 Cr, could be a significant development in India’s healthcare sector.

While discussions are intensifying, no formal offers have been made yet, but the bidding process is expected to commence soon.

Additionally, KKR has recently divested a 5.8% stake in JB Chemicals and Pharmaceuticals, raising INR 1,460 Cr through open market transactions.

Bulk deal data from the National Stock Exchange (NSE) reveals that KKR’s promoter entity, Tau Investment Holdings Pte, offloaded 89.83 lakh shares in four separate transactions.

The shares were sold at prices ranging from INR 1,625 to INR 1,625.34 per share, bringing the total deal value to INR 1,459.84 Cr.

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