Johnson & Johnson to buy Japanese skin care holding company
The deal is being positioned as a move to improve J&J’s standing in Japan, in Japanese beauty, and in dermocosmetics, more broadly.
“Health and beauty consumers are actively seeking science-based innovation to improve their skin,” asserts Jorge Mesquita, worldwide chairman of Johnson & Johnson Consumer, in a press item posted on the company site. “This transaction,” he says, “will maximise value creation for Johnson & Johnson’s Consumer business by bringing in an agile innovation model and rapidly accelerating sales through our global commercialization expertise.”
And, the Ci:z “skincare portfolio is expected to strengthen Johnson & Johnson’s market presence in Japan with key customers, and more broadly bolster its offering in science-based, efficacious dermocosmetic brands,” according to the J&J press item.
Dollars and details
The Ci:z board issued a formal opinion on the offer the same day that J&J announced its plans publically. The holding company’s board of directors met and agreed to “support of the tender offer for its common shares to be conducted by Johnson & Johnson,” according to the opinion.
Proposed terms for the acquisition are ¥5,900 per share, or approximately ¥230 bn. And the deal is expected to be complete in Q1 of 2019.
Bigger picture
J&J outlines the key benefits of the deal in their press item; it will, of course, add value for shareholders.
The acquisition is also expected to strengthen the J&J consumer business (which is the division where its personal care brands operate).
And, there is an ecommerce win here for J&J. “The transaction will be a springboard to build Johnson & Johnson Consumer’s connected commerce capabilities by leveraging one of the largest customer relationship management databases for direct-to-consumer skincare in Japan,” according the company press item.
And J&J’s innovation and distribution networks will be leveraged to grow the acquired skin care brands.
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Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.
