Healthcare-focused American giant Johnson & Johnson (J&J) has announced an agreement to acquire the outstanding shares of Japanese firm Ci:z for US$2.1bn (¥230bn) in a 23 October statement
Ci:z, focused on the development, marketing, and distribution of a range of dermatological and cosmetic products, offers J&J the opportunity to significantly strengthen its market share in the Japanese market.
J&J’s statement added that the acquisition will allow it to “more broadly bolster its offering in science-based, efficacious dermocosmetic brands.”
Jorge Mesquita, worldwide chairman of Johnson & Johnson Consumer, said in the statement:
“Health and beauty consumers are actively seeking science-based innovation to improve their skin.”
“This transaction 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.”
J&J plans to launch the tender offer on 29 October, with the deal expected to close in Q1 2019.
Reuters noted that this is the latest in a slew of deals for cosmetics firms in Asia over the past few years, “as global brands seek to expand in a booming region that includes the $53.5 billion China market by leveraging Asian brands’ smart online marketing and fast turnaround times for new products.”