Shiseido transfer of Personal Care business to CVC

We are advising Shiseido Company, Limited on the transfer of its global Personal Care business to CVC Asia Pacific Limited, including leading global brands TSUBAKI, SENKA and other shampoo, conditioner and other affordable hair care and skin care brands, in a transaction valued at ¥160 billion (approximately $1.52 billion).

Shiseido and CVC have signed a definitive agreement for the transaction, which will also establish a new joint venture for the Personal Care business. Shiseido will maintain an indirect 35% ownership stake in the new company, and will provide cooperation aimed at the further growth and development of the business. Following the transfer, Shiseido’s strategic focus will be on growing its prestige brands, including its core cosmetics business. The transaction is expected to close by July 1, 2021 and is subject to customary closing conditions.

Shiseido is a premier cosmetics company, operating in approximately 120 countries and regions around the world. Founded in 1872 as the first Western-style pharmacy in Japan, Shiseido has evolved into a global beauty brand. Shiseido is headquartered in Tokyo, and is traded on the Tokyo Stock Exchange.

Established in 1981, CVC is one of the leading private equity and credit firms with $109.1 billion of assets under management, $160.3 billion of funds committed and a global network of 23 local offices: 15 across Europe and the Americas and eight in the Asia Pacific region.

The Davis Polk corporate team includes partner Ken Lebrun and associates Lucas C. Adams, Mari Foster and Paul Jun. Partner Frank J. Azzopardi and associate Jesse L. Hallock are providing intellectual property advice. Partner Ronan P. Harty and counsel Matthew Yeowart are providing antitrust and competition advice. Counsel Alon Gurfinkel and associate Veronica Davis are providing tax advice. Members of the Davis Polk team are based in the Tokyo, New York and London offices.