U.S. health-care conglomerate Johnson & Johnson has agreed with Ci:z Holdings Co. Ltd., a Japanese skincare company, to buy all of the outstanding shares of the company that it does not already own for 230 billion YEN (USD$2.05 billion) in cash.
Johnson & Johnson will pay 5,900 YEN per Ci:z share for this transaction. It expects to launch the tender offer on 29 October.
The acquisition will give Johnson & Johnson ownership of some popular brands such Dr.Ci:Labo, Labo Labo and Genomer. It’s expected to strengthen its market presence in Japan with key customers, and more broadly bolster its offering in science-based, efficacious dermocosmetic brands.
“Health and beauty consumers are actively seeking science-based innovation to improve their skin,” said Jorge Mesquita, worldwide chairman, Johnson & Johnson Consumer. “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 commercialisation expertise.”
Apart from strengthening its international innovation pipeline, the transaction will also elevate its connected commerce capabilities by leveraging one of the largest customer relationship management databases for direct-to-consumer skincare in Japan.
Johnson & Johnson will also acquire the shares of the Japanese company’s founder, Yoshinori Shirono, in a separate transaction, said in a statement.
Johnson & Johnson is currently the second-largest shareholder of Ci:z, owning 19.9% through Cilag GmbH International, an affiliate of it, since 2016. Cilag allows Johnson & Johnson to distribute Ci:z’s brands outside of Japan.