CVC Capital Partners, one of the ten largest private equity funds in the world, headquartered in Luxembourg, announced today that CVC Capital Partners Asia Fund V has signed a definitive agreement with Shiseido Company, Limited for the transfer of Shiseido's personal care business to a new company (following joint venture).
Officially, on CVC's side, this operation is aimed at maximizing the potential of the personal care businesses and pursuing their growth.
The new company, in which Shiseido will hold a 35 % stake and CVC Asia V will acquire 65 % as a joint venture, will obtain Shiseido's brand portfolio, including the market-leading Tsubaki hair care brand and Senka skincare brand.
" We are delighted to invest in some of the most trusted Japanese brands that Shiseido has cultivated over the years. And we look forward to partnering with Shiseido as we embark on this new chapter of growth. "said Atsushi Akaike, partner and co-director of CVC Japan.
" Using our global network and experience, CVC is committed to making these strong brands even better. Specifically, we see significant growth potential in investing more in people, brands and R&D, as well as driving digitization and accelerating overseas expansion, with the possibility of going public in the future "said Yukinori Sugiyama, Partner and Co-Head of CVC Japan.
"Prestige first" for Shiseido
As for Shiseido, the company explains that it has launched the transformation of its business and has positioned the sector as one of the most dynamic in the world. premium skin beauty as being at the heart of its development. As a result, its personal care business is no longer as strategic as it once was... It recognizes that this business requires increased marketing investment to enhance its potential and drive future growth. The conclusion is simple: these objectives will be better achieved within the framework of a new business model. Consequently, Shiseido has decided to transfer the business and participate in its operation as a shareholder of the new company. Masahiko Uotani, President and CEO of Shiseido, recalls that the personal care business is an old story dating back " from the launch of Shiseido Soap in 1921. "This operation enables us to divest a business line that is increasingly incompatible with the Group's premium positioning. Mr. Uotani adds: " We are continuing to grow in Japan and around the world with our "Prestige First" group strategy. "
The transaction is expected to close by 1er July 2021 and is subject to the usual closing conditions (each country and overseas region will be closed in stages).
Photo © Shiseido
