TOKYO (Reuters) – Takeda Pharmaceutical Co said on Monday it has agreed to sell its Japanese consumer healthcare business to U.S. investment fund Blackstone Group.

Takeda Consumer Healthcare Company, which makes over-the-counter (OTC) drugs and health products, is valued at 242 billion yen ($2.29 billion) and the sale price will be determined after calculating its debt and other factors, Takeda said.

Japan’s largest pharmaceuticals company has been reducing its OTC assets worldwide as it seeks to refocus its business and reduce debt following its $59 billion acquisition of Shire.

Blackstone was among the final bidders for the OTC unit, Reuters reported in June, along with Bain Capital, CVC Capital Partners and Taisho Pharmaceutical Holdings Co Ltd.

Takeda said proceeds from the sale would boost its net profit by 105 billion yen. The transaction is expected close by March 31, subject to regulatory closing conditions, it said.

The deal follows Blackstone’s acquisition of Japan’s Ayumi Pharmaceutical Corp for $1 billion in March 2019.

($1 = 105.8300 yen)

($1 = 105.8300 yen)

(Reporting by Junko Fujita and Chris Gallagher; Editing by David Goodman)