TOKYO—Shiseido Co. Ltd. said Thursday it has agreed to sell its Carita and Decléor brands to L’Oréal for a total of 227.5 million euros, or $312.93 million at current exchange rates.
Back in October, Shiseido said it had entered talks with the French beauty giant to sell the two brands as it narrows its brand portfolio.
The two French-born skin-care brands are housed in the Shiseido Professional Division, and are distributed in both the professional and retail channels, particularly in Europe.
L’Oréal has stated that together Carita and Decléor generated sales of approximately 100 million euros, or $138 million at current exchange, in 2012, which ranks the pair combined as number two in the global professional skin-care market across beauty institutes, spas and salons.
Shiseido said it plans to focus on its Shiseido Professional and Joico brands within its professional division, which it will continue to develop as a core business unit.
The Japanese company said it expects the transaction to have a “very minor” impact on its fiscal results for the year ending March 31. The effect of the transaction, including the gain on the sale, will be accounted for in the company’s results for the fiscal year ending March 31, 2015, Shiseido said.