CEO of Salonpas Maker Hisamitsu Seeks to Privatize $2.9 Billion Japanese Pharma Giant Amid Going-Private Wave

Hisamitsu’s Business Profile and Strategic Rationale

Founded in 1847, Hisamitsu specializes in transdermal drug delivery systems, with **Salonpas** dominating the global topical analgesic market—annual sales exceed hundreds of millions, fueled by demand for non-opioid pain relief in aging populations across Japan, the US, and Asia.[1] The firm’s portfolio includes prescription patches for hypertension and hormone therapies, positioning it amid **pharma M&A trends favoring OTC consumer health assets**.

Privatization allows Nakatomi to pursue long-term R&D in patch technology without quarterly pressures, especially as Japanese firms face **cross-border M&A headwinds** from US tariffs and regulatory scrutiny.[1] This echoes McKinsey’s 2025 analysis of Japan Inc.’s pivot to privatization, where over 50 deals exceeded ¥100 billion, driven by low interest rates and family governance preferences.

Broader Implications for Japanese M&A and Private Equity

• Wave of Exits: Hisamitsu joins a 2026 surge in **Japanese management buyouts (MBOs)**, with firms like Tobu Railway exploring similar paths to evade shareholder activism—up 40% year-over-year per Bain & Company data on **private equity exit strategies in Asia**.
• Valuation Premiums: Expect a 30-50% premium over market cap, funded via yen-denominated loans amid BOJ rate stability, mirroring KKR-backed delistings.
• Sector Tailwinds: Pharma going-private deals tap **OTC drug M&A trends 2026**, as investors eye synergies with US players like Johnson & Johnson, which has eyed transdermal tech.
• Risks: Financing costs could rise if yen weakens; antitrust review minimal given domestic focus, but global expansion plans may draw scrutiny.

Comparable Deals and Market Outlook

Recent precedents include Eisai’s partial privatization in 2025 and family-led buyouts at Ono Pharmaceutical, highlighting **family-owned Japanese pharma privatization strategies**. Goldman Sachs notes this trend boosts **private equity dry powder deployment in Japan**, with $50 billion earmarked for mid-cap health deals in 2026. For deal advisors, Hisamitsu underscores opportunities in **cross-border M&A trends 2025-2026**, where US PE firms partner on Asia consumer health roll-ups.

Post-delisting, watch for accelerated innovation in Salonpas variants targeting chronic pain amid opioid backlash—potentially unlocking 15-20% EBITDA growth, per BCG pharma benchmarks.