According to an article by Cosmetics Business, Japanese cosmetics giant, Shiseido, could be in talks to sell a portion of its low-priced hair, skin and body care brands as it moves towards investing in the luxe beauty category.
The company is allegedly in discussions with private equity firm, CVC Asia Pacific, to transfer its personal care businesses.
According to a report by Bloomberg, which details intimate details of the acquisition, Shiseido’s Board is currently preparing to vote on the divestment, with a sale estimate of between US$1.45bn and $1.9bn.
Although Shiseido has insisted in a statement that “no formal decisions have been made as of yet,” the operations of hair care brand, Tsubaki, which is mainly active in Japan, China and other Asian areas, are among those rumoured to be targeted.
Back in 2018, Shiseido shifted its focus to a ‘prestige first’ strategy, concentrating primarily on its luxury brands. Today, the company's premium portfolio includes its namesake cosmetics and fragrance brand, Shiseido, Clé de Peau, Dolce & Gabbana, IPSA and Laura Mercier.
In 2019, it also fought off competition from Estée Lauder Companies and Unilever to acquire popular skincare start-up, Drunk Elephant, for an estimated US$845m.
Image source: Fashionista