We, the Japanese students at IESE, are committed to not only advancing our own careers but also exploring how we can contribute to shaping the future of Japan as the next generation of business leaders. We hope to inspire similar reflections among the Japanese business community.
This time, we had the privilege of interviewing Mr. Kadokura, CEO of AGC Pharma Chemical Europe (APCE), a company based in Barcelona acquired by AGC. Drawing from his extensive experience at AGC (Asahi Glass), Dartmouth College’s Tuck Business School, and Johnson & Johnson, Mr. Kadokura successfully led the post-merger integration (PMI) process at APCE, transforming its business model from CMO (Contract Manufacturing Organization) to CDMO (Contract Development and Manufacturing Organization). Our discussion focused on themes such as “Leadership in Cross-Cultural Environments” and “Strategies for Integrating Acquired Overseas Companies.”
About APCE（AGC Pharma Chemical Europe）
Former Company Name: Malgrat Pharma Chemicals, S.L.U.
In 2019, AGC acquired the company from German pharmaceutical giant Boehringer Ingelheim. AGC has positioned its Life Sciences business as a core pillar of its medium- to long-term strategy, focusing on the CDMO market for the development and manufacturing of pharmaceutical compounds and active pharmaceutical ingredients. In particular, AGC places strategic importance on the European market, which accounts for 35% of the global CDMO market, and continues to expand globally through M&A activities.
Reference：https://ps.nikkei.com/catalonia2105/2.html
About Mr.Kadokura
Q. Could you briefly share your career background and your current responsibilities?
I joined AGC (then Asahi Glass) in 1984, starting in the International Division, where I was responsible for overseas projects in Asia. My work ranged from administrative tasks and drafting contracts to launching new projects, technology export, and plant sales—essentially everything except direct product trade operations. At the time, Asahi Glass had a policy requiring employees to transfer after five years in a single department. Wanting to strengthen my skills with numbers, I volunteered for a role in accounting, moving to the cost calculation team at the Kashima plant. Later, I was fortunate to study at Dartmouth College’s Tuck Business School under AGC’s newly established company-sponsored MBA program.
After graduating, I was posted as the first expatriate to a glass company in Tennessee that AGC had just acquired. My role was to oversee post-merger integration (PMI). Upon returning to Japan, I worked at Johnson & Johnson (J&J) for over 20 years, including in a business unit later owned by a private equity fund. At J&J, I gained experience across consumer goods, artificial joints, pharmaceuticals, and diagnostic divisions. While I initially saw my career foundation as finance, I also gained experience in sales, strategy, CFO roles, and eventually, a regional General Manager position. The spin-off of a business unit into private equity ownership toward the end of my tenure became a valuable experience that connects to my current work.
Q. Why did you transition to the healthcare industry after your MBA, and what led you back to AGC?
When I changed jobs, I wasn’t specifically targeting healthcare. It was 1998, the year of the Nagano Olympics, and Japan’s financial sector was undergoing a crisis, with major banks like Hokkaido Takushoku Bank and Yamaichi Securities collapsing. Back when I joined Asahi Glass, banks dominated the employment rankings as symbols of stability, but those institutions were now failing. From the U.S., it seemed clear that Japan was in trouble, but when I returned, I was struck by how little had changed within companies despite the visible issues. Around that time, a recruiter approached me about joining J&J. I recalled studying J&J’s crisis management case involving Tylenol during my MBA, and that prompted me to take the offer.
At J&J, I gained diverse experiences and was eventually promoted to an APAC General Manager role. However, just as I reached that point, the business was sold to a private equity fund. A year after assuming the role, the headquarters announced a strategic alternatives study, laying out several options for the business. Leading during this uncertain period meant finding ways to motivate employees despite their concerns. Fortunately, even after the sale, the business had a strong foundation, and we managed the transition without significant employee turnover.
However, there were challenges. J&J’s Our Credo, which prioritizes customers, employees, communities, and shareholders in that order, resonated deeply with me. I tried to uphold those principles under private equity ownership, but it wasn’t easy. Integration took three years, involving regulatory coordination, system migrations, and more. Just as I felt I had given my all, AGC reached out. Despite leaving the company, AGC had always maintained connections through annual gatherings and informal networks. I was offered the opportunity to return as the leader of a newly acquired Spanish company, marking my return to AGC.
Q. Looking back, what do you think prevents organizations from taking action even when they sense an imminent crisis?
Looking back, I think it wasn’t just fear of change but also an inability to envision what the future would look like after the change. Once a shift happens, organizations can often adapt and thrive, but the fear of what might be lost or disrupted tends to dominate. In the 1990s, while innovative companies like Rakuten were emerging fearlessly, many established organizations were more focused on mitigating risks than pursuing transformation. That approach, I believe, led Japan to prioritize preserving the old over fostering competitiveness. However, AGC managed to navigate these challenges through steady transformation. For instance, despite losing its dominant market share in CRT glass and facing sharp price drops in flat glass, AGC adapted by pursuing new opportunities in chemical products and other areas.
Management to facilitate corporate integration
Q. Managing not only the PMI (Post-Merger Integration) of an acquired overseas company but also transitioning its business model from a manufacturing base to a CDMO (Contract Development and Manufacturing Organization) while maintaining speed and delivering results must have been a formidable challenge. What were the key aspects you focused on in your management approach?
Both the case of the U.S. company acquired earlier in my career and the integration of an artificial joint company into Johnson & Johnson (J&J) demonstrate that PMI has been a recurring and integral part of my professional journey. Having experienced various patterns of integration, I wasn’t intimidated by the process.
Interestingly, I’ve also experienced the reverse situation—being on the receiving end of an integration. Our Barcelona-based company was acquired by AGC from Boehringer Ingelheim (BI), a German pharmaceutical firm. While AGC’s reputation is well-established in Japan’s manufacturing sector, employees in Spain—given the different industry and location—were naturally apprehensive about the acquiring company. Having experienced the other side of such situations helped me deeply understand their concerns.
When it comes to integration, the first and most critical principle is approaching the other party with respect. One must avoid biases like “they’re not capable” or “they won’t cooperate.” Respecting people as individuals is non-negotiable.
The second principle is making timely decisions. When I rejoined AGC, the due diligence phase for the Barcelona acquisition had already been completed. Instead of overanalyzing, I trusted my intuition to determine, “This team can work; this company has a strong foundation,” and moved forward decisively.
Finally, I focused on establishing clarity from the outset. On Day 1 of the integration, I set the vision and mission for the company. Shortly after, we organized a management retreat in Girona, a scenic town near Barcelona, where the team, including local members, collaboratively developed a five-year roadmap to achieve our goals.
When AGC’s CEO visited the site, he asked why the integration had gone so smoothly. One of the local directors responded, “AGC brought us respect and hope.”。
Q. It seems your experience in the U.S. served as a formative foundation for your integration expertise. Are there any specific memories that stand out?
One vivid memory comes from the post-MBA period when I was tasked with integrating a U.S. company AGC had acquired. Fresh out of Tuck Business School, I felt confident, only to have that confidence shattered almost immediately. The acquired company was built by an entrepreneur who had consolidated several local glass businesses. It was vastly different from AGC, a large corporation, and full of unique individuals. Their sales and production methods were completely unlike AGC’s highly refined processes. I remember thinking, “How can two glass businesses be so different?”
Rather than dismissing their methods, I became curious and sought to understand why they worked. For example, their production equipment was basic, and their internal systems were unstructured. Yet, I realized, “For general construction glass, this approach might actually be sufficient.” Unlike AGC, which used the same Furnace to produce high-precision automotive glass and standard construction glass, their method was cost-effective and fit-for-purpose.
This experience taught me the importance of respecting differences and being open to learning. One anecdote I fondly recall is struggling to understand the factory manager’s thick Southern accent when I first arrived in Tennessee. After three months, we finally started understanding each other. When I asked what he initially thought of me, he said, “Honestly, I didn’t understand a word you said, but I figured you weren’t a bad guy.” I laughed and admitted I felt the same way about him. This mutual understanding built trust and allowed us to move forward without imposing Japanese standards unnecessarily.
Q. Cultural differences, particularly in work styles (e.g., operational and product quality standards) and communication styles (e.g., directness), often become evident in PMI and business transitions. What cultural challenges did you face in Spain, and how did you overcome them?
Surprisingly, I didn’t encounter significant cultural challenges. This was partly due to the fact that the site had been part of a German company, which meant it already operated at a “top pharma” level with global standards. Additionally, the market focus was international, and all managers and above were bilingual.
The real challenges were external. Regulatory approvals and dealing with government agencies were incredibly complex, involving multiple stakeholders. While Spain is advanced in terms of digitalization, some aspects of its administrative processes still felt quite old-fashioned.
If I had to highlight one cultural trait, it’s that Spaniards love to talk—often a lot—without always reaching a clear conclusion!
In the second half of the interview, we asked him about the nature of management work and his advice to the younger generation.（↓）