US-based conglomerate Johnson & Johnson (J&J) has made an offer to buy Japanese cosmetics maker Ci:z Holdings Co in a move to strengthen its presence in Japan and bolster its roster of dermocosmetics brands.
Johnson & Johnson is to buy all the outstanding shares in Ci:z Holdings Co that it does not already own for around ¥230bn ($2.05bn)—or ¥5,900 ($52.6) per share—in cash.
Ci:z Holdings Co markets, develops and distributes a range of dermocosmetic, cosmetic and skincare products under the Dr.Ci:Labo, Labo Labo and Genomer brands.
Beyond strengthening its presence in Japan and adding to its skincare portfolio, the deal also gives J&J access to what it says is one of the largest CRM databases for direct-to-consumer skincare in Japan. J&J also plans to develop Ci:z Holdings’ portfolio and its distribution.
In July 2016, J&J affiliate Cilag forged a long-term partnership with Ci:z Holdings Co to distribute the company’s brands outside Japan. Cilag acquired around 19.9% of the company’s outstanding shares as part of the deal.
J&J plans to launch the tender offer on October 29, 2018. It is expected to close in the first quarter of 2019. Following this, J&J is planning a squeeze-out procedure to purchase the remaining shares in the company that were not tendered in the tender offer, which is expected to be complete in the first half of 2019.