Consumer-focused private equity firm L Catterton has invested 20 billion yen ($182 million) in Japanese healthcare services provider PHC Holdings Corporation (PHCHD).
Formerly known as Panasonic Healthcare, PHCHD provides value-added products and services across diabetes management, life sciences and diagnostics globally, and healthcare services in Japan. In 2019, the company acquired the anatomical pathology business (currently operating as Epredia) from Thermo Fisher Scientific Inc. and LSI Medience Corporation, which mainly conducts clinical testing business.
PHCHD sold an 80% stake to global asset manager KKR for $1.67 billion in 2014, while the balance was held by consumer electronics major Panasonic Corporation. Mitsui & Co. and Life Science Institute, a member of the Mitsubishi Chemical Holdings Group, later joined as shareholders of PHCHD.
“L Catterton will support further growth for PHCHD by utilising its expertise, industry knowledge, and wide-ranging network in the consumer healthcare industry,” PHCHD said in a statement.
L Catterton has invested in consumer healthcare services businesses such as FYI Doctors, ClearChoice, 98Point6, and Patient Point. The investment in PHCHD marks the firm’s expansion into the medical devices and health data space.
“The healthcare industry, and medical devices in particular, are rapidly shifting from a scientific and engineering orientation towards greater consumer-centricity. This positions L Catterton to leverage our deep insights and play a valuable role in the development of PHCHD’s future businesses, particularly in the US and Asia,” said L Catterton Asia managing partner Chinta Bhagat.
The $25-billion L Catterton closed its third Asia fund at $1.45 billion in 2019, above its $1.25 billion target.
The firm’s Asia-targeted blank check company, L Catterton Asia Acquisition Corp, recently priced its Nasdaq IPO at $250 million.
L Catterton has also appointed two senior hires to its India and Southeast Asia investment teams. Yock Siong Song Tee joined the firm from Affinity Equity Partners at its Singapore office to oversee Southeast Asia, while Anjana Sasidharan joined its Mumbai office from Sequoia Capital to oversee earlier-stage investments across India and Southeast Asia.