Shiseido skin care products and color.
M. Von Holden | FilmMagic | Getty Images
Japanese beauty company Shiseido has said it intends to sell the personal care business, which includes its hair and skin care products at lower prices, to private equity firm CVC Capital Partners for 160 billion yen (1 , 5 billion US dollars).
The Shiseido personal care unit includes popular brands such as Senka face wash and Tsubaki shampoo.
Under this agreement, the assets will be transferred in July to a new company. The private equity fund CVC Asia V will acquire a 65% stake in the share, and Shiseido will hold a 35% stake.
“We see significant growth potential through additional investment in employees, brands and research and development, as well as by stimulating digitalization and accelerating overseas expansion, with the potential to become public in the future,” said Yukinori Sugiyama, partner and co-chief 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 its eponymous Shiseido line. As part of this strategy, the company plans to leave non-core business by the end of this year.