Healthcare Technology Featured Article

March 18, 2013

Panasonic Selling Healthcare Business in a Bid to Raise Cash


According to sources, Panasonic has made plans to sell its healthcare business segment in an effort to raise cash.

The Japanese electronics company is facing significant financial problems. Last November, Panasonic reported a $9.6-billion loss, which caused the company’s shares to lose one fifth of their value.

The losses came from write-downs in Panasonic’s solar, battery and mobile handset businesses. The company had invested heavily in plasma television sets, rechargeable batteries and solar panels with the acquisition of Sanyo in 2009.

Company president Kazuhiro Tsuga told The New York Times, “We are among the losers in consumer electronics.” Tsuga said his focus was to shift Panasonic away from televisions and gadgets that continued to lose money.

When the company released news of its planned healthcare sales, the stock closed 0.6 percent higher on the Nikkei index. Panasonic’s stock has risen a total of 33 percent this year. Tsuga has said that he would cut Panasonic’s business units from 88 to 56, focusing on the profitable welding and beauty appliance segments.

Panasonic’s healthcare business consists primarily of medical devices like hearing aids and glucose monitors. Analysts speculate that the sale could gross as much as $1.1 billion for the company.

Prospective buyers may include private equity fund KKR & Co., but spokespersons in Japan refused to comment on the deal.

Bloomberg also reported that Panasonic is cutting jobs. The company recently closed a factory that produced plasma television sets just two years after the factory had opened.

In addition to selling business units, Panasonic has also sold off real estate. The company sold a large building in Tokyo to two Japanese investors for $526.9 million.

In all, the company hopes to raise a total of $1.4 billion to bolster its ailing finance.




Edited by Braden Becker
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