Shiseido Announces Agreement to Sell Zotos to HenkelShiseido Company, Limited (5:00PM)
Business Wire India
Shiseido Company, Limited (Tokyo Stock Exchange, First Section: 4911), a leading global cosmetics company, today announced that it has entered into a definitive agreement to sell its wholly-owned subsidiary Zotos International Inc. ("Zotos") to Henkel.
Shiseido has been promoting a selection and concentration strategy in order to enhance its global brand portfolio as part of its VISION 2020 strategy. As part of that strategy, Shiseido is sharpening its focus on key categories and regions in order to optimize its portfolio, and is focused on driving global growth across its prestige beauty businesses while strengthening its leadership in Asia in the mass cosmetics, personal care, and professional categories. Shiseido's Professional business plays an important role in the company's beauty portfolio, and Shiseido plans to concentrate and boost its investment in the professional market in Asia. Shiseido is confident that Zotos, which is based in the U.S. and primarily focused on the North American market, will be well-positioned for further growth opportunities as part of Henkel's global Beauty Care professional portfolio.
Masahiko Uotani, President and Group CEO of Shiseido Company, Limited, said, "The Professional business has been a cornerstone of Shiseido's heritage since the company opened its first beauty salon in Japan nearly a century ago, and we remain as committed and focused as ever on cultivating and strengthening this key business in the fast-growing Asian markets, including China and Asia Pacific as well as Japan. Henkel's offer to acquire Zotos provides a great opportunity for our Professional group to concentrate its focus on its core capabilities in Asia."
Based in Darien, CT, Zotos manufactures and markets a full range of award-winning hair care, texture service and hair color options for salons and salon professionals worldwide, with a primary focus in North America and a growing emphasis on the European market. Its portfolio of brands includes Joico, AGEbeautiful, Biotera, Bain de Terre and Senscience. The company's product innovations and dynamic beauty education have made it a trusted leader in professional haircare for nearly 90 years.
Nancy Bernardini, President of Zotos, said, "Shiseido has been an outstanding home for Zotos for almost three decades – as part of Shiseido's Professional Division, Zotos added even more layers of innovation and artistry to its products and achieved significant milestones, including becoming one of the fastest-growing mid-sized companies in professional beauty. By joining Henkel, we will be taking important steps for the future of our business, focusing on strategic geographic markets that are key to our long-term success while continually invigorating our brands as part of Henkel's highly complementary portfolio. We are excited to embark on this new chapter."
Shiseido will use the resources gained from this transaction to further pursue its strategic objectives of continuing to nurture its Prestige brands, reinforcing production capability and other activities in order to implement its "New Strategy to Accelerate Growth" in the next three years of VISION 2020.
Annual net sales for Zotos totaled $233 million in the fiscal year ending 2016. The transaction is expected to close in December 2017, subject to the satisfaction of customary closing conditions.
About Shiseido Company, Limited
Shiseido was founded in 1872 as the first Western-style pharmacy in Japan. The business gradually evolved into a cosmetics company, offering people the most advanced technology and the finest aesthetics available in the East or the West. Now known globally as the premier cosmetics company with roots in Japan, the name Shiseido has come to represent the world's highest standards of quality. Shiseido's global selection of skincare, makeup and fragrance includes a high-performance category for special skincare, and a brightening line. Shiseido offers products for professional beauty salons and hairdressers, as well as body care, suncare and a skincare line for men. Fiercely contemporary and innovative after over 140 years in business, Shiseido group brands are now sold in over 120 countries and regions. For more information, please visit http://group.shiseido.com/.
About Zotos International Inc.
Zotos International Inc. is a fully integrated, global professional haircare company with the mission of inspiring stylists around the globe with the most innovative and high-performing products, dynamic education and exceptional customer service. Founded in 1932 and acquired by Shiseido Company, Limited in 1988, Zotos manufactures and markets a full range of hair care, texture service and hair color products for today's salons and salon professionals. The Company's products include shampoos, conditioners, treatments and styling products. Hair color products consist of semi-permanent and permanent solutions and developers. Hair texture products include perms, straighteners and temporary straighteners, and are offered through a network of professional beauty stores, retailers and fine salons around the globe. The company's brands include: Joico, VEROK-PAK Color, Lumishine, IColor, ISO Options, AGEBeautiful, Bain de Terre, Quantum and Vita E. For more information, please visit https://www.zotos.com/.
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