Shiseido coloring and skin care products.
M. Von Holden | FilmMagic | Getty Images
Japanese beauty firm Shiseido said it plans to sell its personal care business, which includes its low-cost 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 facial soap and Tsubaki shampoo.
Under this agreement, 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 have a 35% stake.
“We see significant growth potential by investing even more in employees, brands and R&D, as well as boosting digitalization and accelerating expansion abroad, 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 is focused on its premium beauty brands, such as NARS Cosmetics, Bare Escentuals and its namesake line Shiseido. As part of this strategy, the company plans to close its non-essential businesses by the end of this year.