Shiseido skin care and color products.
M. Von Holden | FilmMagic | Getty Images
Japanese beauty company Shiseido plans to sell its personal care products business, which includes its cheaper 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 like Senka Face Wash and Tsubaki Shampoo.
Under this agreement, the assets will be transferred to a new company in July. The private equity fund CVC Asia V will acquire a 65% stake in the company and Shiseido will own a 35% stake.
"We see significant growth potential by continuing to invest in people, brands and R&D, driving digitization 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 was founded in Tokyo in 1872 and focuses on its premium beauty brands such as NARS Cosmetics, Bare Escentuals and the Shiseido line of the same name. As part of this strategy, the company plans to leave non-core businesses by the end of this year.