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.
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.