[ad_1]
Every morning we deliver world news that you want to keep track of before you start your day. Click here to subscribe to the Bloomberg newsletter.
Shiseido is a major European investment fund that is developing a low-priced daily necessities business for mass retailers such as pharmacies and supermarkets.Final adjustments have been made to sell to CVC Capital Partners. The sale price is expected to be 150-200 billion yen. Several people familiar with the matter revealed on condition of anonymity.
According to people familiar with the matter, a board meeting will be held soon to make a formal decision. The company will sell the business, which the company positions as a “lifestyle”, including the “TSUBAKI” hair care brand, low-priced skin care products and body products.
The company’s shares rose 4.4% from the day before to 7,072 yen on the 22nd, and then temporarily increased 6.5% to 7,218 yen, the highest rate of increase during the day since November 10 of the year. past.
Yuji Ohhana, an analyst at Okasan Securities, says the sale of the lifestyle business is appropriate. “President Uotani has said that Shiseido is not a company that handles products for 1000 yen or less, and I thought it was possible to sell personal care products,” he said. “This time, we did a review of the brand and other companies. I believe that the structural reforms in the region will also advance,” he said.
Shiseido Shiodome Office
Photographer: Kiyoshi Ota / Bloomberg
This business is developing mainly in Japan, but also in China and other Asian regions. In fiscal year 2012/19, it sold about 100 billion yen, which is less than 10% of the total. The domestic and foreign divisions of the business and related subsidiaries will also be transferred to CVC in a lump sum. CVC has determined that Shiseido’s business is highly competitive in China and Asia, and aims to further increase its business value through the use of the fund’s network.
Shiseido’s operating loss for the previous fiscal year (ending December 2008) was 3.7 billion yen (compared to a surplus of 113.8 billion yen in the previous fiscal year), which Bloomberg compiled based on forecasts. out of 17 analysts. The company drastically sold its side business in response to the announcement of financial results for the period January-March 2008 in May last year.He had established a policy of structural reform.
The lifestyle business for sale has maintained a growing trend, but has positioned itself as a side business in light of intensifying competition. It will be a big decision to question the true worth of Mr. Masahiko Uotani, who was appointed external president to the company as the company’s first “professional manager” in 2014 and has promoted bold reforms.
The company will continue to review its business portfolio, transferring management resources to highly profitable high-priced brands sold in department stores and specialty cosmetic stores, and non-face-to-face sales using digital technology, and will recover and grow business performance . to get back on track.
Shiseido’s Global Public Relations Department commented in response to Bloomberg’s inquiry that it was not announced by the Company. CVC had no comment through the public relations firm.
(Update analyst opinions and stock price movements by adding them after the third paragraph)
