Johnson & Johnson has informed markets that it plans to acquire 80% of Japan-based Ci:z Holdings for ¥230bn ($2.05bn), of which it already owns 20%. Johnson and Johnson’s move strengthens the US group’s presence in the rich Japanese market of dermatology products.
JnJ has valued the company at ¥5,900 per share, that is a 55% premium over last week’s closing price. Ciz Holdings’ leading brands include Dr. Ci: Labo and Genomer, which will also be marketed outside Japan, especially in other Asian countries, where the market of skin care products is growing at rocketing rates. For instance, this market has already reached $53bn in China. Western multinationals have entered into various M&A agreements over the last few months, in order to secure their presence in Asia: to provide two significant examples, L’Oréal has acquired South Corea-based Nanda, and Unilever has acquired Carver Korea ($2.7bn).