Japan's Shiseido Company announced yesterday that it will sell its wholly-owned subsidiary Zotos International Inc. to Henkel for $485 million. Shiseido has been promoting a selection and concentration strategy in order to enhance its global brand portfolio as part of its VISION 2020 strategy. As part of that strategy, Shiseido is sharpening its focus on key categories and regions in order to optimize its portfolio, and is focused on driving global growth across its prestige beauty businesses while strengthening its leadership in Asia in the mass cosmetics, personal care, and professional categories.
Shiseido is confident that Zotos, which is based in the U.S. and 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.
Based in Darien, Connecticut, Zotos manufactures and markets a full range of hair care, texture service and hair color options for salons and salon professionals worldwide, with a primary focus in North American and a growing emphasis on the European market. Its portfolio of brands includes Joico, AGEbeautiful, Biotera, Bain de Terre and Senscience.
"Shiseido has been an outstanding home for Zotos for almost three decades," says Nancy Bernardini, President of Zotos. "As part of Shiseido's Professional Division, Zotos added even more layers of innovation and artistry to its products and achieved significant milestones," she says. "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.”
The deal is Henkel’s third acquisition in the U.S. hair professional business in recent years, after it bought brands Sexy Hair, Alterna and Kenra in 2014 and last month closed the purchase of Nattura Laboratorios, the owner of brand Pravana.