The Japanese cosmetics giant has agreed to sell its mass market skin-care and toiletries business to CVC Capital Partners in a deal worth 160 billion yen (USD 1.5 billion or EUR 1.3 billion).

However, Shiseido will keep a foothold in this business as it plans to acquire a 35% stake in the holding company that will operate it.

The operations divested - which include Tsubaki hair-care products, the Senka skin care line or deodorant brand Ag DEO24, among others - are no longer in the company’s core business. Indeed, Shiseido wants to focus on high-end cosmetics, which already account for more than 70% of the group’s turnover, and become the world’s leader in the segment by 2030.

Transaction overview (Source: Shisiedo)

Transaction overview (Source: Shisiedo)

According to Shiseido, the personal care business requires enhanced marketing investment to maximize its potential and foster further growth. “These goals will be best achieved under a new business model,” said the group in a statement on Wednesday.

The entire operation is expected to be finalized by next July.