Olympus nearing deal to sell microscope unit for over $2 billion

1 min read
Olympus nearing deal to sell microscope unit for over $2 billion

A man passes a logo of Japan’s Olympus Corp outside the company showroom in Tokyo December 21, 2012. REUTERS/Yuriko Nakao

Register now for FREE unlimited access to Reuters.com

HONG KONG, Aug 23 (Reuters) – Japan’s Olympus Corp (7733.T) is close to selling its microscope unit to a private equity firm in a deal that could fetch more than 300 billion yen ($2.2 billion), three people with direct knowledge of the matter told Reuters.

Bain Capital has emerged as the frontrunner, said one of the people and a separate person with direct knowledge of the deal.

Carlyle Group (CG.O) and KKR & Co (KKR.N) also submitted binding bids this month for the unit which makes microscopes, industrial endoscopes and x-ray analysers, said three of the people with direct knowledge.

Register now for FREE unlimited access to Reuters.com

Olympus has been restructuring in recent years with the aim of focusing solely on medical technology and if this sale is successful, it would be the company’s biggest divestment to date, according to Refinitiv data.

A spokeswoman for Olympus said nothing has been decided at the moment and the company will make announcements when necessary, declining to disclose further details.

Bain, Carlyle and KKR declined to comment. All sources declined to be identified as the information is confidential.

Olympus, which started off as a domestic microscope producer over a century ago, spun off the unit in April, naming it Evident Corp.

Evident had total assets worth 143.3 billion yen by end of March and has forecast operating profit of 26.5 billion yen for the current financial year.

As part of its overhaul, Olympus has invited activist investor ValueAct Capital onto its board, bought several overseas medical-equipment firms and sold its digital camera business that had been a long-time money-loser.

(This story corrects the profit estimate in eighth paragraph)

Register now for FREE unlimited access to Reuters.com

Reporting by Kane Wu in Hong Kong and Makiko Yamazaki in Tokyo; Editing by Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

Read More

Leave a Reply

Your email address will not be published.

Previous Story

Ukraine’s key food exports have fallen by almost half since Russian war

Next Story

utu and Etihad Guest Partner to Bring Extra Rewards to Etihad Guest Members, Business News

Latest from Blog