Brands carved out in the deal include Shiseido’s well-known drugstore brands Tsubaki and Senka
Shiseido has confirmed the sale of its low-budget brands to CVC Capital as it shifts focus to its prestige beauty category.
The Japanese beauty giant’s well-known drug store brands Tsubaki and Senka, along with other brands carved out in the deal, will be split from the company’s other beauty brands, the company said in a statement.
The deal is said to be worth US$1.5bn, or 160bn Japanese yen, according to reports.
Shiseido will remain a shareholder of the independent business holding a modest 35% stake in the venture.
While a date for the sale has not been confirmed by the group, it is expected to be completed by 1 July.
“First of all,I would like to express my sincere gratitude to those who use our personal care brands, and ask for your continued support,” said the group’s CEO Masahiko Uotani.
“Of course, I assure you that our beloved brands will carry on,” he added.
“The new company will maximise investment in product innovations, digital marketing, sales and human resources for further growth of the brands.”
Rumours circulated last month that the Drunk Elephant owner was considering a sale following an article published by Bloomberg with intimate details of the sale.
In response, Shiseido confirmed it was in the process of transferring its personal care businesses to the private equity group.