Global investment firm KKR is in advanced discussions to acquire Japanese medical equipment manufacturer Topcon, according to a report by Reuters citing sources familiar with the matter.
Sources indicate that negotiations are progressing, with a potential agreement expected in the coming days. However, financial terms of the potential transaction have not yet been disclosed.
Topcon, which has a market capitalisation of approximately JPY323.4bn ($2.15bn), opened at JPY2,944.5 per share on Thursday, reflecting a 0.9% decline from the previous session’s close. Following reports of the potential takeover, Topcon’s shares surged as much as 8.55%, reaching JPY3,224 per share.
The prospective acquisition highlights Japan’s increasingly favourable environment for private equity investment, driven by corporate governance reforms, rising shareholder activism, and a weaker yen. A growing number of Japanese companies, including JSR and Fuji Soft, have opted to go private amid mounting pressure from activist investors.
Topcon has reportedly been working with financial advisers to explore a sale, attracting interest from multiple private equity firms.
Founded in 1932, the Tokyo-based company specialises in medical devices, smart infrastructure, and positioning solutions. The firm was previously 30% owned by Toshiba, which fully exited its stake in 2015.
Activist funds ValueAct Capital and Oasis Management Company are currently Topcon’s largest shareholders, holding 13.69% and 10.58% stakes, respectively, according to LSEG data.
For the fiscal year ending March 31, Topcon has projected a group operating profit of JPY7bn ($46.51m) on JPY211bn in sales, based on its latest earnings report.
