In a move to come the world's premier prestige beauty company by 2030, Shiseido is selling its personal care business to CVC Capital Partners for $1.5 billion. Last month, Shiseido said it was in discussion to sell the unit, which operates primarily in Asia and includes brands such as Uno and Aquair.

In a statement, Shiseido said “The company recognizes that its personal care business, comprising such global brands as Tsubaki and Senka, requires enhanced marketing investment to maximize its potential and foster further growth, and concludes these goals will be best achieved under a new business model. Therefore, the company has determined to transfer the business and participate in its operation as a shareholder of the company, which will manage the business after the transfer.”

Under terms of the agreement, the personal care business, valued at 160 billion yen (about $1.52 billion at current exchange rates), is to be transferred from the group and its wholly owned subsidiaries. Then a new company will be set up, the shares of which will be shifted to the Oriental Beauty Holding Co. Ltd., which is financed by funds advised by CVC.

A joint venture will be established, and Shiseido is to act as a shareholder of the company that will operate the personal care business after the transfer.