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Mitsui to Acquire Shares in Panasonic Healthcare Holdings

Nov. 18, 2016


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has agreed to acquire shares in Panasonic Healthcare Holdings Co., Ltd. ("PHCHD"). Mitsui will invest 54.1 billion yen to acquire 22% of PHCHD shares from PHCHD's largest shareholder, funds managed by Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR"). PHCHD's corporate mission is to provide health care solutions that are easily accessible to patients. Through this investment in PHCHD, Mitsui, in collaboration with partners KKR and Panasonic Corporation, aims to further enhance PHCHD's corporate value and provide innovative technologies to diabetes patients worldwide.

PHCHD primarily develops, manufactures, and sells healthcare devices, focusing on blood glucose monitoring meters and strips for people with diabetes through its subsidiary Panasonic Healthcare Co., Ltd. ("PHC"). In 2016, PHCHD acquired Ascensia Diabetes Care ("Ascensia"), formerly the diabetes care unit of Bayer Aktiengesellschaft, a leading provider of diabetes care solutions to people with diabetes and healthcare professionals in 125 countries around the world.

As developing countries achieve economic growth, the number of patients with lifestyle diseases is rapidly increasing. Among these, the number of diabetes patients is forecast to rise from 420 million in 2015 to 640 million by 2040, while the number of diabetes patients in emerging Asian countries (*) is expected to rise to 60% of the world total. Diabetes patients require continued monitoring and treatment of the disease because they are at risk of developing complications including retinopathy, kidney disease, and neurological disorders.

"Medical / Healthcare" is one of Mitsui's Key Strategic Domains. Mitsui has been actively investing in hospitals and other related businesses in Asia. Through this investment in PHCHD, Mitsui will promote and support the sale of PHCHD's medical devices to the healthcare organizations in which Mitsui has already invested, as well as to its overseas customer base to enhance PHCHD's corporate value and strengthen the ability of those healthcare organizations to attract patients. In the field of diabetes in the emerging markets of Asia, Mitsui will build a treatment service network that matches the stages of the disease, establishing an easy-to-use healthcare ecosystem for patients, while strengthening the company's healthcare business profit base.

(*) Source: International Diabetes Federation, 'IDF DIABETES ATLAS Seventh Edition 2015'

Outline of PHCHD

Official name Panasonic Healthcare Holdings Co, Ltd.
HQ Location Minato-ku, Tokyo
Incorporated 2014
Representative Hidehito Kotani (President)
Business Development, manufacture and sale of healthcare devices and services (In vitro diagnostic devices, medical IT solutions, and laboratory & medical support devices, etc.)
Net sales 185.0 billion yen (FY 2017 forecast — Consolidated basis)
Total assets 359.9 billion yen (as of March 31, 2016 — Consolidated basis)
Employees 5,500 (as of March 31, 2016 — Consolidated basis)
Shareholders and shareholding ratio Prior to Mitsui investment KKR: 80%, Panasonic: 20%
After Mitsui investment Mitsui: 22%, KKR: 58%, Panasonic: 20%
Name of subsidiary Panasonic Healthcare Co., Ltd. (incorporated in 1969)
Website

http://www.panasonic-healthcare.com/global/

Outline of KKR

Official name Kohlberg Kravis Roberts & Co. L.P.
HQ location New York, USA
Established 1976
Representatives Henry R. Kravis (Co-Chairman and CEO)
George R. Roberts (Co-Chairman and CEO)
Business Global investment firm that manages investments across multiple asset classes
Revenues US$1.4 billion on a U.S. GAAP basis, US$1.2 billion on a segment basis (Year to September 30, 2016,)
Number of employees 1,196 (As of December 31, 2015)
Website

http://www.kkr.com

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819