PARIS — Is Shiseido selling its personal care business to CVC Capital Partners?
According to a Bloomberg report, the Japanese beauty giant is shifting its focus to high-end brands and looking to divest its noncore assets. Bloomberg said CVC and Shiseido are in advanced talks, and that the business could sell for 150 billion yen to 200 billion yen, or $1.45 billion to $1.9 billion.
Spokespeople from neither company could immediately be reached for comment on the report of a possible deal, which is expected imminently.
Shiseido shares closed up 4.4 percent on Friday to 7,075 yen.
Brands said to be involved in the deal include Tsubaki.
Shiseido, hard hit by the global pandemic, posted a net loss for the first nine months of its fiscal year, as well as double-digit declines in sales and operating profit, the company said in November.
The group’s third-quarter results were significantly stronger than those of the second quarter, signaling a possible turnaround in the future.
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Japan’s largest cosmetics company posted a net loss of 13.67 billion yen for the nine months ended Sept. 30. This was in contrast to a net profit of 72.46 billion yen in the same period a year earlier. Shiseido said it was due to lower sales, as well as extraordinary losses related to COVID-19, such as compensation of employees on leave and maintenance costs for stores and production facilities.
The company’s operating profit for the period plummeted by 91.4 percent to 8.9 billion yen, which it said was despite efforts to reduce costs in response to the rapid deterioration and market conditions.
Shiseido’s nine-month net sales dropped by 22.8 percent on the year, totaling 653.68 billion yen.
CVC Capital Partners’ beauty investments include Douglas and PDC Brands.
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