Friday, October 18, 2013
DJ: Shiseido In Exclusive Talks To Sell 2 French Cosmetics Businesses To L'Oreal
TOKYO--Shiseido Co. (4911) said Friday that it has entered exclusive talks to sell two of its Paris-based cosmetics businesses to its bigger rival L'Oreal S.A., adding that the French company has offered EUR230 million for a possible buyout.
Japan's biggest cosmetics maker, which suffered its first net loss in eight years in its last business year, said the move is part of its steps to concentrate its business resources on growth fields with sustainable high profits.
In line with the business strategy, Shiseido is in talks to sell Carita International S.A. and Laboratoires Decleor S.A.S., both specialising in skin care, body care, hair care treatment and other products, to L'Oreal. Shiseido said the terms and conditions, including the transaction price, have yet to be decided.
Shiseido is aiming to return to a net profit of Y20 billion in the current business year to March 2014 after suffering a net loss of Y14.69 billion in the just-ended fiscal term. Its bottom line was hurt by a falloff in domestic sales and a consumer backlash in China due to political tensions between Tokyo and Beijing over a territorial dispute.
The firm is also struggling with flagging sales at Bare Escentuals, acquired by Shiseido in March 2010.