Johnson & Johnson (J&J) has agreed to acquire all outstanding shares of Japanese skincare firm, Ci:z Holdings, in a deal valued at around ¥230bn ($2.04bn).
Ci:z is engaged in the development, marketing and distribution of a range of dermocosmetic, cosmetic and skincare products.
As per terms of the deal, J&J and its affiliates will purchase all of the outstanding shares Ci:z by paying ¥5,900 ($52.4) per share.
Under the deal, J&J will acquire Ci:z’s range of brands, including Dr.Ci:Labo, Labo Labo and Genomer line of skincare products.
The acquired business will enable J&J to expand its market presence in Japan and reinforce its offering in science-based dermocosmetic brands.
In July 2016, J&J’s affiliate Cilag entered into a long-term strategic collaboration with Ci:z to supply its brands outside of Japan.
Under the collaboration, Cilag purchased 19.9% of the outstanding shares of Ci:z.
J&J intends to launch the tender offer on 29 October to acquire all of the outstanding shares of Ci:z, and is expected to close in the first quarter of 2019.
According to J&J, the acquired business will help expand and improve retail presence through its consumer capabilities and distribution networks, as well as allow to provide an advanced platform for portfolio expansion by leveraging its innovation pipeline.
Johnson & Johnson Consumer worldwide chairman Jorge Mesquita said: “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.”
In 2017, J&J acquired Swiss biopharmaceutical firm Actelion for $30bn, which discovers, develops and commercializes new drugs for diseases with significant unmet medical need.
The deal added J&J with Actelion’s existing PAH franchise, including Opsumit, Uptravi, Tracleer, Veletri, and Ventavis.
Other Actelion products included in the deal are Valchlor (mechlorethamine gel) for the treatment of stage IA and IB mycosis fungoides-type cutaneous T-cell lymphoma (MF-CTCL), and Zavesca (miglustat), a reversible inhibitor of glucosylceramide synthase for the treatment adult patients with mild to moderate type 1 Gaucher disease.