US private equity giant KKR & Co has gained first negotiation rights to acquire Japanese herbal health tonic manufacturer Yomeishu Seizo Co, in a move that could see the company taken private in early 2026, according to a report by Bloomberg.
KKR is expected to finalise the purchase price and launch a tender offer in January, though Yomeishu has confirmed that no decisions have yet been made. The Japanese firm’s shares surged 14% following the announcement, valuing the company at JPY90.3bn ($72m).
The deal follows two prior auctions in which multiple funds, including KKR, submitted bids. Any transaction will require agreement from Yuzawa KK, Yomeishu’s largest shareholder, holding 28% of outstanding shares.
Yomeishu, advised by Mitsubishi UFJ Morgan Stanley Securities, owns significant assets including an 11-storey office in Tokyo’s Shibuya district, manufacturing facilities and retail outlets in Nagano Prefecture.
The potential take-private comes amid record corporate deal activity in Japan, spurred by corporate governance reforms and increased activist investor influence. Analysts note that Japan’s evolving buyout landscape continues to attract international PE interest, with investors targeting both founder-led companies and established family-run businesses.
