Shiseido confirms sale of consumer business for US$1.5 billion
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Japanese beauty company Shiseido said it plans to sell its personal-care business, which includes its lower-priced hair care and skin care products, to private equity firm CVC Capital Partners for 160 billion yen (US$1.5 billion).
Shiseido’s personal-care unit includes popular brands like Senka face wash and Tsubaki shampoo.
Under this deal, the assets will be transferred in July to a new company. Private equity fund CVC Asia V will acquire a 65% stake in the venture and Shiseido will hold a 35% stake.
“We see significant potential for growth by investing further in employees, brands, and R&D, as well as by driving digitalization and accelerating overseas expansion, with the possibility of going public in the future,” said Yukinori Sugiyama, partner and co-head of CVC Japan, in a statement.
Founded in Tokyo in 1872, Shiseido is focused on its premium beauty brands such as NARS Cosmetics, Bare Escentuals, and its namesake Shiseido line. As part of this strategy, the company is planning.
Questions & Answers
Q.Which specific brands are included in the personal-care business Shiseido is selling?
Which specific brands are included in the personal-care business Shiseido is selling?
The personal-care unit being sold by Shiseido includes well-known brands such as Senka face wash and Tsubaki shampoo. These are part of the lower-priced hair care and skin care product lines.
Q.What is the ownership structure of the new company being formed to hold these assets?
What is the ownership structure of the new company being formed to hold these assets?
Private equity fund CVC Asia V will acquire a 65% stake in the new venture. Shiseido, the original owner, will retain a 35% stake in the newly formed company.
Q.What is Shiseido's strategic reason for divesting its personal-care business?
What is Shiseido's strategic reason for divesting its personal-care business?
Shiseido is selling this business as part of a strategy to concentrate on its premium beauty brands. These include NARS Cosmetics, Bare Escentuals, and its own namesake Shiseido line.
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