JAPAN/GERMANY. Shiseido Company has entered an agreement to sell its wholly-owned subsidiary Zotos International to German consumer goods maker Henkel.
Shiseido said it will use the resources gained from the transaction to further pursue its strategic objectives of continuing to nurture its Prestige brands. It will also reinforce production capability and other activities in order to implement its ‘New Strategy to Accelerate Growth’ in the next three years of Vision 2020.
Shiseido added that it is confident that US-based Zotos, which is 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.
Zotos manufactures and markets a full range of haircare, texture service and hair colour options for salons and salon professionals worldwide. Its portfolio of brands includes Joico, AGEbeautiful, Biotera, Bain de Terre and Senscience. The company was founded in 1932 and acquired by Shiseido in 1988.
Zotos’ annual net sales totaled US$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.
Shiseido Company Group CEO and President Masahiko Uotani 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.”
Zotos President Nancy Bernardini commented: “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.”