HONG KONG—KKR & Co.-backed Panasonic Healthcare Holdings Co.
is buying Bayer AG's diabetes-care business for just over €1
billion ($1.13 billion), a move that builds out a global
distribution channel for the Japanese health-care company.
Japanese companies are increasingly hunting abroad for
acquisitions that can help them grow revenues and build out their
sales and distribution channels.
Panasonic Corp. sold 80% of its medical-devices business to KKR
last year with the aim of building the global reach of the
operations with the U.S. private-equity firm. Panasonic still owns
20% of Panasonic Healthcare.
Panasonic Healthcare and Bayer have cooperated extensively in
the past, with Bayer marketing devices made by the health-care
company, including exclusive arrangements to sell some Panasonic
Healthcare products.
Panasonic Healthcare manufactures blood glucose monitoring
meters and strips for diabetes patients in additional to medical
information technology and a life sciences business.
The Bayer diabetes unit that Panasonic Healthcare is buying
recorded sales of €909 million last year.
The deal is expected to close in the first quarter of 2016, the
companies said in a statement.
Write to Rick Carew at rick.carew@wsj.com
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