Partners sells majority stake in PCI Pharma to Kohlberg & Co; Blackstone snaps up Takeda’s Japanese consumer health unit; Branford strikes first Fund 2 investment

Takeda Pharmaceutical is divesting its Japanese consumer healthcare business to Blackstone Group and Branford Castle Partners buys Fibrix Filtration.

Good morning!

This is Sarah, filling in all week for Chris, who’s off enjoying outdoor shenanigans and family time.

This just in: Kohlberg & Co has come out on top in one of healthcare’s most anticipated processes this summer, striking a $3 billion plus deal for PCI Pharma Services, according to sources familiar with the matter.

A $3 billion deal value implies the company has close to tripled its value over about four years.

When Partners in June 2016 agreed to acquire a majority stake in PCI Pharma from Frazier Healthcare Partners, the deal valued PCI at just under $1.1 billion, the Wall Street Journal reported at the time.

The Swiss private equity house intends to remain a minority investor in the company this time around. Minority investors Thomas H. Lee and Frazier are set to exit their investments. Check out my full story.

The deal follows a separate bet by Kohlberg in the outsourced life sciences industry last summer. The firm in June 2019 prevailed in the sales process for Mason Wells’ Nelipak Healthcare Packaging, the provider of healthcare thermoformed packaging. The deal was valued at approximately $590 million, sources told PE Hub at the time.

Have you heard any updates around other brewing activity in the space? Hit me up at springle@buyoutsinsider.com.

Top Scoops
More healthcare: Takeda Pharmaceutical said on Monday it has struck a deal to divest its Japanese consumer healthcare business to Blackstone Group. The deal is valued at JPY 242.0 billion ($2.29 billion). Read more.

Branford Castle Partners has acquired Fibrix Filtration, a filtering component manufacturer that had paused its sale process during March and April at the height of the pandemic.

Comprising a mix of debt and equity, Fibrex fell within Branford’s typical $40 million to $60 million range in terms of deal value, said Laurence Lederer, senior managing director at the firm. Branford typically invests in companies with EBITDA of up to $15 million.

Check out Karishma Vanjani’s full story.

That’s it for me today. As always, send any feedback, comments or tips my way at springle@buyoutsinsider.com.

Have a great day!