CVC Capital Partners has agreed a JPY160bn ($1.52bn) buyout of a suite of skincare and shampoo brands from Japanese cosmetics business Shiseido.
The deal for the lower-cost personal care brands follows Shiseido revamping its business amid the Covid-19 crisis as people change their personal care routines.
CVC said it would tap its $4.5bn Asia V fund for the deal, picking up a 65% stake in the business, with Shiseido continuing to hold a 35% stake.
The deal includes market-leading haircare brand Tsubaki and skincare label Senka.
CVC Japan co-head Atsushi Akaike said, “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.”
Fellow Japan co-head Yukinori Sugiyama added, “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.”
The transaction is expected to close by July 1.
Last month CVC was said to be in talks for a $2bn buyout of hairdryer maker Conair alongside Spectrum Brands Holdings.
CVC raised one of the biggest private equity funds of all time last year by hauling in €21.3bn for a final close for its eighth flagship vehicle.
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