MatsukiyoCocokara & Company is acquiring Shinseido Drugstores to strengthen its presence and enhance services in the competitive pharmacy market in Northern Kyushu, Japan.

Target Information

In August 2023, M&A activity in Japan saw a total of 345 deals, marking a 13.8% decline compared to the same month last year. Within this market, the domestic inbound (IN-IN) transactions totaled 283, reflecting a 13.5% decrease year-on-year. Meanwhile, the outbound deals (IN-OUT) accounted for 34 transactions, down 22.7%, and inbound from abroad (OUT-IN) consisted of 28 deals, indicating a decrease of 3.4%. Despite the overall drop in M&A activity, business succession M&A showed a notable increase with 75 deals, up 25.0% from the previous year, which had 60 deals.

Recent activity in the pharmacy and drugstore sector has been vibrant, particularly with MatsukiyoCocokara & Company planning to acquire the Fukuoka-based pharmacy business of Shinseido through its wholly-owned holding company, And Company. Founded in 1979, Shinseido operates 119 locations focused in Northern Kyushu, and reported sales amounting to approximately 28.73 billion yen. This acquisition is part of MatsukiyoCocokara's strategy to expand their market share in Northern Kyushu while enhancing customer convenience.

Industry Overview

The pharmacy and drugstore industry in Japan has been undergoing significant changes, with M&A activities acting as a catalyst for growth and consolidation. The landscape in recent years has seen a wave of strategic acquisitions aimed at enhancing operational capabilities and mark