Ain Holdings plans to acquire rival pharmacy operator Kraft for more than ¥100 billion ($690 million), marking the latest consolidation move in Japan’s fragmented dispensing market as drugstore chains increasingly encroach on prescription-filling territory, Nikkei reported.
Japan’s largest dispensing pharmacy operator will pay nearly ¥60 billion for Kraft’s shares from current owner Nippon Sangyo Suishin Kiko and assume the company’s debt, according to sources familiar with the matter. The transaction, expected to close around August, would strengthen Ain’s position in a market dominated by more than 60,000 small independent pharmacies.
The acquisition comes as major drugstore chains like Welcia Holdings and Matsumoto Kiyoshi expand their prescription businesses, threatening traditional pharmacy operators. Drugstores typically focus on over-the-counter medications and cosmetics but are pushing into the more lucrative prescription market, where insurance dispensing fees can account for over 80% of revenue.
Ain has pursued aggressive expansion through acquisitions, leveraging its scale in an industry ripe for consolidation. The company faces pressure from activist investor Oasis Management, which acquired a 9.6% stake last year.
Japan’s aging population, with over one-third of citizens above 65, continues driving demand for pharmaceutical services, while government pricing pressures squeeze margins across the healthcare sector.
