KKR Mulls To Buy Japan-Based Eye Care Company Topcon

KKR & Co Inc KKR is close to acquiring Tokyo-based eye care company Topcon Corp TOPCF TOPCY.

According to Reuters, the private equity firm expects to sign the deal in the coming days. The price has not been disclosed yet.

The Japan-based manufacturer of optical equipment for ophthalmology and surveying has an enterprise value of around $2.53 billion as per data from Benzinga Pro.

Benzinga reached out to Topcon for comments.

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According to Reuters, a possible deal is in the works as Japan’s business reforms, growing investor activism, and a weak yen have made it easier for private equity firms to strike deals.

Topcon’s biggest shareholders are activist investors ValueAct Capital and Oasis Management Company, with stakes of 13.69% and 10.58%, respectively.

In its most recent quarterly earnings, Topcon reported YTD December 2024 sales of 153.5 billion yen. That’s down 3.3% year over year, with an operating income of 0.8 billion yen.

The company said profits declined despite lower fixed costs due to reduced sales amid the ongoing demand slump.

For the eye care business, the company said despite steady sales, profits declined due to increased growth investment.

For fiscal year 2024, the company projects an operating profit of 7 billion yen and sales of 211 billion yen.

In December, Topcon entered a bidding process with private equities to go private.

The Bloomberg reported that KKR and EQT were bidding for Topcon.

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