Panasonic is selling 80% of the business and the 20% remaining interest to help work with the firm. Two straight years of losses is more than likely what predicated this sale, they need money. I guess we will see what the private
equity firm does as far as managing and hopefully turning a profit again for the company. A loss of $7 billion a year sounds like some serious money issues.
What was also interesting is the 75 billion being taken from the healthcare sector and reinvesting it in the consumer electronics end of their business, I guess a little pump of of operating money needed there. It’s interesting when you look at the portfolio companies of KKK as you find Alliance Boots (Big Walgreens investment) , Go Daddy, HCA Holdings- Hospital Corporation of America, as a few of their portfolio partners.
As mentioned below Panasonic has both consumer and biomedical products they manufacture and sell. BD
TOKYO — Kohlberg Kravis Roberts agreed on Friday to buy the health care unit of Panasonic for 165 billion yen, or $1.67 billion, as the Japanese company tries to streamline its operations after two years of steep losses.
After the deal, K.K.R. will own 80 percent of Panasonic Healthcare, while Panasonic will retain 20 percent, according to a joint statement. Panasonic said it would cooperate with K.K.R., which is based in New York, in managing the health care business.
Panasonic Healthcare manufactures and sells blood glucose monitoring meters and sensors for diabetics. It also produces information technology equipment for medical clinics, as well as biomedical laboratory equipment like low-temperature freezers.
Panasonic said on Friday it would post an extraordinary gain of 75 billion yen from the sale of the health care unit and reinvest those funds into its mainstay electronics and other areas.
http://dealbook.nytimes.com/2013/09/27/k-k-r-to-buy-panasonic-healthcare-for-1-67-billion/?_r=0
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