KKR’s efforts to take Japanese herbal tonic maker Yomeishu Seizo private have been derailed after the company’s largest shareholder declined to support the transaction, according to a report by Bloomberg citing unnamed people familiar with the situation.
The US private equity firm had secured first negotiation rights and was in discussions to finalise terms for a potential tender offer, but the process has now stalled after Tokyo-based investment firm Yuzawa KK, which holds just under 28% of Yomeishu’s outstanding shares, withheld its backing. Support from Yuzawa is considered essential for any take-private transaction to proceed.
The setback follows months of interest in the company, during which multiple private equity firms were reported to have participated in auction processes. KKR had emerged as a leading contender and had been expected to launch a tender offer once key terms, including valuation, were agreed with core shareholders.
Yomeishu, which produces a traditional herbal health tonic and owns significant real estate and cash assets, has been viewed as an attractive target amid a broader wave of Japanese take-private deals. Corporate governance reforms and pressure to improve capital efficiency have encouraged founders, management teams and financial sponsors to explore buyouts, making 2025 one of the most active years on record for such transactions in Japan.
Neither KKR nor Yomeishu have commented on the latest developments.
