Japanese beauty company Shiseido said it plans to sell its personal-care business, which includes its lower-priced hair care and skincare 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 transfered 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 to exit non-core businesses by the end of this year.
Source: Business - cnbc.com
