THE WHAT? Shiseido has announced the sale of its shampoo and affordable skin care business to CVC Capital Partners, in a deal valued at 160 billion yen ($1.52bn).
THE DETAILS Brands divested as part of the sale include Tsubaki haircare and Senka face wash, with the transfer date set for July 2021.
Transferring the assets to a holding company that CVC is to invest in, upon the sale Shiseido will acquire a 35 percent stake in the company, which will be run by CVC.
THE WHY? The writing has been on the wall for Shiseido’s affordable, mass market arm, for some time, with the Japanese beauty giant working to realign its business to that of a ‘premium skin care beauty company.’
CEO Masahiko Uotani said, “We are pursuing further growth in Japan and globally with our Group strategy of “Prestige First.” For the first time since our foundation, we have achieved sales exceeding 1 trillion yen and 100 billion yen in operating income with strategic focus on the mid-to-high-priced Cosmetics business, which accounts for more than 70% of Group sales since 2015. I strongly believe that we must maintain this strategy, and that it is the foundation for Shiseido and its nearly 150 years of heritage to thrive for the next 150 years.”