Panasonic and KKR Agree to Panasonic Healthcare Share Purchase

  Panasonic and KKR Agree to Panasonic Healthcare Share Purchase

                   Companies to form joint holding company

Business Wire

TOKYO & NEW YORK -- September 27, 2013

Panasonic Corporation (“Panasonic”) and Kohlberg Kravis Roberts & Co. L.P.
(together with its affiliates, "KKR") today announced the signing of a share
purchase agreement and a shareholders’ agreement under which Panasonic and KKR
will become joint partners of Panasonic Healthcare Co., Ltd. (“Panasonic
Healthcare”).

Based on today’s agreements, PHC Holdings Co, Ltd. (“PHCHD"), which is
wholly-owned by KKR investment funds, will purchase all outstanding shares of
Panasonic Healthcare, including its related intellectual property and assets,
for an equity value of approximately JPY 165 billion (approximately US$ 1.67
billion at the exchange rate of US$1=JPY99). The transaction will be followed
by a third party share allocation by PHCHD, after which KKR will own 80% of
outstanding shares of PHCHD and Panasonic will own 20%. Panasonic and KKR will
cooperate in the management of Panasonic Healthcare.

Panasonic Healthcare is a comprehensive healthcare company focusing on three
core businesses—In Vitro Diagnostics, Medicom, and Biomedical. Panasonic
Healthcare’s In Vitro Diagnostics business has a leading global market share
in the manufacture and sale of blood glucose monitoring meters and sensors for
diabetics. Its Medicom business has the top share in Japan in medical receipt
computers, electronic health record systems and other IT equipment for medical
clinics, while its Biomedical business has a leading market share in Japan and
overseas in biomedical laboratory equipment including CO[2] incubators and
ultra-low temperature freezers.

Panasonic and KKR will leverage their respective business resources, including
their healthcare industry knowledge, technology, and specialist expertise, as
well as their global healthcare industry investment experience and network, to
together aim for further growth of Panasonic Healthcare.

Panasonic President, Kazuhiro Tsuga, said, “As previously announced in
Panasonic’s New Midterm Management Plan, we have been seeking a partner who
shares our vision for achieving a step change in the growth and evolution of
Panasonic Healthcare. Today, we are pleased to have reached an agreement with
KKR to acquire Panasonic Healthcare. We understand KKR has been actively
investing in the expanding healthcare sector, and we highly respect KKR’s
industry expertise and its capability to provide the necessary growth capital
and operational know-how, in preparation for the future development of
Panasonic Healthcare in the global healthcare industry. Through our
partnership, Panasonic will work with KKR to support the growth of Panasonic
Healthcare, which will continue to be a member of the Panasonic Group. At the
same time, we believe that partnering with KKR will also allow us to learn
from KKR’s global operational and business management expertise as we pursue
the next stage in growth for Panasonic.”

Commenting on the agreements, KKR’s Co-Founder and Co-CEO Henry Kravis said,
“Panasonic Healthcare has excellent market positions and high-level technical
capabilities, and we believe it has significant growth potential. Panasonic
Healthcare’s experienced management team and employees, our equity partner
Panasonic, and KKR all share a common goal of working together as partners
over the long term to support further growth of Panasonic Healthcare. Japan is
a very important and attractive market for KKR, and our experienced team on
the ground in Japan looks forward to leveraging KKR’s global expertise and
experience to make this a highly successful partnership.”

Panasonic Healthcare President Kenji Yamane said, “KKR has built long-term
relationships with its portfolio companies around the world, and I am
delighted for their support as Panasonic’s new partner for Panasonic
Healthcare. Looking ahead, we aim to accelerate growth by building out our
global sales channels to major overseas healthcare facilities, aided by KKR’s
overseas network, and delivering to customers around the world an enhanced
range of products and services. We also welcome the continued support of
Panasonic as an important shareholder in this partnership.”

Subject to approval by the relevant authorities and other customary closing
conditions the above agreements are expected to be completed by the end of
March 2014.

                                    * * *

About Panasonic Corporation

Panasonic Corporation is a worldwide leader in the development and engineering
of electronic technologies and solutions for customers in residential,
non-residential, mobility and personal applications. Since its founding in
1918, the company has expanded globally and now operates over 500 consolidated
companies worldwide, recording consolidated net sales of 7.30 trillion yen for
the year ended March 31, 2013. Committed to pursuing new value through
innovation across divisional lines, the company strives to create a better
life and a better world for its customers. For more information about
Panasonic, please visit the company's website at http://panasonic.net/.

About Panasonic Healthcare

Established in 1969, Panasonic Healthcare is a Panasonic group company
involved in developing, manufacturing, selling and servicing medical
equipment. It seeks to strengthen its core businesses, In Vitro Diagnostics
including self-monitoring of blood glucose systems, its Medicom businesses
involved in medical IT businesses and its life sciences based Biomedical
business and to continue to pursue an important role in the provision of
optimal healthcare for all. For further information on Panasonic Healthcare
please visit http://panasonic.net/corporate/segments/phc/.

About KKR

KKR was founded in 1976 and is led by Henry Kravis and George Roberts. KKR is
a leading global investment firm with $83.5 billion in assets under management
as of June 30, 2013. KKR has offices located worldwide and manages assets
through a variety of investment funds and accounts covering multiple asset
classes. KKR & Co. L.P. is publicly traded on the New York Stock Exchange
(NYSE: KKR), and “KKR,” as used in this release, includes its subsidiaries,
their managed investment funds and accounts, and/or their affiliated
investment vehicles, as appropriate. For additional information on KKR, please
visit KKR's website at www.kkr.com.

Contact:

Media Contacts:
Panasonic / Panasonic Healthcare
Tokyo Public Relations Office
Tel: +81 3 3574 5664 Fax: +81 3 3574 5699
or
Panasonic News Bureau
Tel: +81 3 3542 6205 Fax: +81 3 3542 9018
or
KKR Asia Pacific
Steven Okun, +65 6922 5800
Steven.Okun@kkr.com
or
KKR Japan
Ashton Consulting
+81 3 5425 7220
KKRJapanPR@ashton.jp
or
KKR New York
Kristi Huller, +1 212 230 9722
Kristi.Huller@kkr.com
 
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