Shiseido to Sell Personal Care Business to CVC in $ 1.5 Billion Contract

Japanese beauty firm Shiseido has announced plans to sell its personal care business, which includes its low-cost hair and skin care products, to private equity firm CVC Capital Partners for 160 billion yen ($ 1.5 billion).

Shiseido’s personal care unit includes popular brands such as Senka Facial Wash and Tsubaki Shampoo.

As part of the deal, the assets will be transferred in July to a new company. CVC Asia V private equity fund will acquire a 65% stake in the company and Shiseido will own 35%.

“We see significant growth potential by investing more in people, brands and R&D, as well as boosting digitization and accelerating overseas expansion, with the possibility of going public in the future.” , said Yukinori Sugiyama, partner and co-manager of CVC Japan, in a statement.

Founded in Tokyo in 1872, Shiseido focuses on its high-end beauty brands such as NARS Cosmetics, Bare Escentuals and its eponymous line Shiseido. As part of this strategy, the company plans to exit non-core activities by the end of this year.