Shiseido skincare and color products.
M. Von Holden | FilmMagic | Getty Images
Japanese beauty company Shiseido said it plans to sell its personal care business, including cheaper hair and skin care products, to private equity firm CVC Capital Partners for 160 billion yen (US $ 1.5 billion).
Shiseido’s personal care division includes popular brands such as Senka facial cleanser and Tsubaki shampoo.
Under this deal, the assets will be transferred to a new company in July. 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 further investing in employees, brands and R&D, as well as driving digitalization and accelerating overseas expansion, with the potential to go public in the future,” said Yukinori Sugiyama, partner and co- head 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 the Shiseido line of the same name. As part of this strategy, the company plans to exit non-core operations by the end of this year.