Johnson & Johnson intends to purchase the remaining part of the Japanese firm Ci:z
American cosmetics manufacturer Johnson & Johnson has announced that it intends to acquire the remaining shares of the Japanese company’s Ci:z, which specializiruetsya on cosmetics for skin care.
Through this acquisition, body brand Dr.Ci:Labo, Labo Labo Genomer and will become part of the portfolio of Johnson & Johnson. And this, in turn, will improve the company’s presence in the Japanese market and will enable it more broadly to improve its offer in the field of dermatological cosmetics, attracting brands, whose development is based on scientific research.
The representative of Johnson & Johnson, one of the senior managers, Jorge Mesquita said: “Consumers and health care products and cosmetics are actively looking for innovations based on science to improve their skin. This transaction maximizes value creation for the consumer business of Johnson & Johnson through the implementation of flexible and innovative models and rapid acceleration of sales through our global excellence in commercialization.”
In July 2016 Cilag, a branch of Johnson & Johnson, has signed a long term agreement on strategic cooperation for the distribution of brands of Ci:z outside of Japan. In this partnership, the company Cilag acquired approximately 19.9% of the issued shares of the Japanese firm.
The tender offer is part of a series of transactions, which involve the intention of the American company to purchase all issued shares of Ci:z. This involves a separate transaction, which will allow Johnson & Johnson to acquire shares of Ci:z, owned by CIC, the owner of which is also the company’s founder, Dr. Yoshinori, Sirona.
This acquisition complements a number of transactions in the segment of cosmetics in Asia in recent years. The French firm L’oreal has agreed to buy South Korean cosmetics firm Nanda in may; and Unilever bought cosmetics firm Carver Korea for 2.7 billion US dollars in 2017, according to Reuters. Estee Lauder, LVMH has also invested in South Korean cosmetic company. Such processes in the market is not surprising, because Asia has overtaken North America for the sales of decorative cosmetics.