Blackstone is working with the management of I’rom Group to take the Japanese pharmaceutical services company private.
A tender offer will be made to acquire I’rom Group shares at ?2,800 per share — a roughly 50% premium to Monday’s closing price of ?1,873, according to a statement from the company. Pending the offer’s success, I’rom will be delisted and Blackstone will own 55% of the company. The remaining 45% will be held by I’rom founder and President Toyotaka Mori — a combination of his current ownership and family members’ holdings.
Based on its market capitalization, the offer price values the company at about ?35 billion ($218 million).
Tokyo-based I’rom provides clinical trial management services to pharmaceutical companies that need to run drug trials in Japan — a routine process in getting medicines approved for sale and use locally.
“About 70% of the medicines sold in the U.S. and Europe are not available in Japan because of the problem of drug lag, so we were looking for a company that could help solve this problem,” said Atsuhiko Sakamoto, a senior managing director at Blackstone’s Japan office.
Blackstone will help I’rom with new business development, like identifying drugs in late-stage trials in the U.S. and partnering with drugmakers to run trials in Japan to speed up local availability, Sakamoto said. I’rom specializes in oncology drug trials, a segment that is expected to see increased demand given 91AV原创 aging population.
The New York-based firm aims to hold onto the I’rom investment for five years and exit through a relisting, Sakamoto said. Blackstone approached Mori and worked with him over two years to come to an agreement about the deal. Mori will stay on as chief executive officer after I’rom goes private.
The number of management buyouts in Japan reached a record last year, providing opportunities for private equity investors.
The I’rom deal comes five months after Blackstone said it would acquire a payment service provider from Sony Group. Blackstone’s other private equity portfolio companies in Japan are in the health care segment: Ayumi Pharmaceutical and Alinamin Pharmaceutical.
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