Shiseido in Discussions with CVC to Sell Personal-Care Business
January 21, 2021
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Shiseido Company, Limited (TSE:4911) is in advanced talks to sell its shampoo and affordable skincare business to CVC Capital Partners Limited for JPY 150 billion to JPY 200 billion ($1.45 billion-$1.9 billion), as the Japanese cosmetics maker shifts its focus to premium beauty products, people with knowledge of the matter said. The board of Shiseido is preparing to vote on the divestment soon, said the people, who asked not to be identified because the information isn’t public. The operations targeted for sale includes the company’s Tsubaki hair-care products and is mainly active in Japan, China and other parts of Asia. The potential deal includes some of Shiseido’s domestic and overseas operations, the people said. Negotiations are ongoing and could still be delayed or even fall apart, the people said. The company confirmed it was in discussions with CVC Capital to sell the unit, and that “no formal decisions have been made as of yet.” An external representative for CVC declined to comment.
Shiseido Company, Limited specializes in the design, manufacturing and marketing of cosmetics. The group offers beauty products (including makeup items, coloring, etc. ; Shiseido, Aupr's, DQ, Za, Revital Granas, B?n?fique, Maquillage and Elixir), skin care products (skin creams, bath and shower gels, shampoos, etc. ; Aqua Label, Integrate, Tsubaki and Uno), perfumes (Issey Miyake, narciso Rodriguez, Elis Saab and Azzedine Ala?a) as well as professional products (Joico, Decl?or and Carita).
Net sales are distributed geographically as follows: Japan (32.9%), China (25.6%), Asia and Oceania (6.4%), Europe/Middle East/Africa (10.3%), Americas (9.9%) and other (14.9%).