Japan's Nissha to acquire Vietnam-based USM Healthcare

Nissha, a Japanese firm engaging in indutrial materials and medical technologies, has decided to acquire USM Healthcare Medical Devices Factory JSC, a Vietnam-based medical devices manufacturer.

After the acquisition, USM Healthcare will become a subsidiary, Nissha stated in a press release issued last Friday.

Nissha and its Vietnamese subsidiary Nissha Vietnam will acquire 59.99% and 0.01% of the issued shares of USM Healthcare, respectively, totalling 60%. The transaction is slated for March 2026.

Nissha did not disclose the acquisition price at the request of the transaction partners.

USM Healthcare's main business lines are manufacturing and sale of products such as stents used in cardiology (devices used in catheter-based treatments that are minimally invasive) and devices used in orthopedics.

The acquisition is part of Nissha’s long-term strategy, including raising the ratio of its consolidated net sales from the medical market to 50% by 2030.

"As Vietnam’s only domestic manufacturer in the stent field, USM Healthcare has continued to grow in recent years on the back of preferential policies aimed at domestic medical devices in Vietnam, and is thus anticipated to enjoy further growth in the future," Nissha noted in the release.

"Moreover, USM Healthcare is leveraging its capabilities in the areas of product design, development and manufacturing in relation to the services it provides to medical device manufacturers, and is developing its contract design/development and manufacturing organization (CDMO) for medical devices," the company added.

The medical devices market in Southeast Asia, including Vietnam, is rapidly expanding against the backdrop of economic development and improved standards of medical care. There is increased demand for medical devices offering high levels of quality and superior cost efficiency, meaning that the market is expected to see further growth in the future, according to the release.

With a focus on the U.S., the most advanced country when it comes to medical devices, Nissha has leveraged its advanced capabilities in the areas of design, development and manufacturing in relation to areas such as surgical instruments for minimally invasive medical care, and has aimed to expand its business regarding CDMO formedical devices.

Together with Nissha’s continuation of business expansion in the U.S., the establishment of a new subsidiary taking place on this occasion means that Nissha will be acquiring a new business base for medical device manufacturing in the Asia region, it said.

"Taking full advantage of the Nissha Group’s customer bases in the U.S. and Japan, the group’s knowledge on design, development and manufacturing in relation to CDMO for medical devices, as well as its quality management, the company will proceed with strengthening the existing businesses of USM Healthcare and making them more efficient while also promoting the geographic expansion of CDMO for medical devices in Southeast Asia," Nissha added.