SSDOF - Shiseido to Sell Personal-Care Line to CVC for $1.5 Billion

Shiseido (OTCMKTS: SSDOF) , a Japanese multinational beauty company, is set to sell its personal-care division to CVC Capital Partners for a total of 1.5 Billion. The business includes its affordable hair-care and skincare products with brands such as Senka face wash and Tsubaki shampoo.

Amid the agreement, the division will be placed under a new company in July of 2021. CVC Asia V will receive a 65% stake in the deal, while Shiseido will maintain a 35% stake.

“We see significant potential for growth by investing further in employees, brands, and R&D, as well as by driving digitalization and accelerating overseas expansion, with the possibility of going public in the future,” said Yukinori Sugiyama, partner and co-head of CVC Japan, in a statement.

Shiseido has opted to focus on its prime beauty brands which include NARS Cosmetics, Bare Escentuals and its namesake Shiseido line.

“We are delighted to be investing in some of Japan’s most trusted brands cultivated over the years by Shiseido. Further, we are excited to be partnering with Shiseido as we embark on this next chapter of growth,” said Atsushi Akaike, Partner and Co-Head of CVC Japan.

“Using our global network and experience, CVC is committed to making these strong brands even better. Specifically, we see significant potential for growth by investing further in employees, brands, and R&D, as well as by driving digitalization and accelerating overseas expansion, with the possibility of going public in the future,” said Yukinori Sugiyama, Partner and Co-Head of CVC Japan.

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