MBK Partners Acquires Japanese Pharmaceutical Company Arinamin for 3 Trillion Won

Acquired from Blackstone for about 3 trillion KRW
MBK's second 'trillion KRW' M&A this year
Strength in pharmaceutical, bio, and healthcare investments

Private equity firm MBK Partners has acquired Japanese pharmaceutical company Arinamin Pharmaceutical. This marks MBK Partners' second 'trillion-won' scale merger and acquisition (M&A) this year.

The Korean brand name of Arinamin's flagship product is 'Actinum'.

According to the Japanese economic newspaper Nihon Keizai Shimbun on the 2nd, MBK Partners is acquiring Arinamin Pharmaceutical from Blackstone, the world's largest US-based private equity firm, for 350 billion yen (approximately 3 trillion won). Other bidders for management rights included CVC Capital and EQT Partners, but MBK Partners emerged as the final winner.

Arinamin Pharmaceutical originated from Takeda Consumer Healthcare, a subsidiary of Takeda Pharmaceutical. In 2021, Blackstone acquired it for about 240 billion yen (approximately 2 trillion won). Under Blackstone, a local subsidiary was established in Taiwan the same year, and efforts were made to expand overseas sales of the main vitamin product 'Arinamin.' The company focused on brand strategy.

It also invested heavily in overseas operations. It has expanded sales into China and South Korea. The Korean product name for Arinamin vitamins is Actinum. In Taiwan, sales centered on vitamins and gastrointestinal medicines nearly tripled in three years. To expand its business, it actively pursued mergers and acquisitions. In 2022, it acquired Yuka Holdings, and recently, it acquired Nihon Pharmaceutical, which had been manufacturing Arinamin products on consignment, from Takeda Pharmaceutical.

MBK Partners has strengths in pharmaceutical, bio, and healthcare investments. This year, it acquired Geo Young, the top pharmaceutical distributor in South Korea, for about 2 trillion won. Coincidentally, Blackstone was also the seller in that transaction. Last year, MBK Partners acquired Osstem Implant and Medit, and also purchased Hitowa Holdings, a healthcare company operating elderly nursing homes in Japan, for 90 billion yen (approximately 770 billion won). Additionally, MBK Partners has extensive investment experience in Japan. Recently, it sold the Japanese luxury jewelry brand 'Tasaki' after seven years, achieving about double the investment returns.

Arinamin Pharmaceutical's EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first quarter of this year was approximately 23 billion yen (about 20 billion won). Its sales were about 90 billion yen (approximately 7.7 billion won). MBK Partners is expected to leverage its know-how accumulated from investing in consumer goods companies to enhance Arinamin Pharmaceutical's corporate value. The Japanese pharmaceutical market was about 840 billion yen (approximately 72 trillion won) as of 2023. Nihon Keizai analyzed that "not only securing market share in Japan but also the significant growth potential overseas was one of the main factors behind this acquisition decision."