Shiseido skin and color products.
M. Von Holden | FilmMagic | Getty Images
Japanese beauty company Shiseido said it plans to sell its personal care business, which includes its hair and skin care products at lower prices, to private equity firm CVC Capital Partners for $ 160 billion. yen (1.5 billion US dollars).
Shiseido’s personal care unit includes popular brands such as Senka Facial Wash and Tsubaki Shampoo.
Under this agreement, the assets will be transferred in July to a new company. The private equity fund CVC Asia V will acquire a 65% stake in the company and Shiseido a 35% stake.
“We see significant growth potential by investing more in employees, brands and R&D, as well as boosting digitization and accelerating overseas expansion, with the possibility of going public in the future,” said Yukinori Sugiyama, partner and co-director of CVC Japan, in a statement.
Founded in Tokyo in 1872, Shiseido focuses on its premium beauty brands such as NARS Cosmetics, Bare Escentuals and its eponymous Shiseido line. As part of this strategy, the company plans to abandon non-core businesses later this year.