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Following the announcement released in October 2013, L’Oréal and Shiseido have finalized the contracts for the acquisition by L’Oréal of Decléor and Carita. The closing will be effective pending remaining approvals from regulatory authorities.
According to Shiseido, it is undertaking rigorous group-wide efforts toward pursuing a strategy based on "selection and concentration," with the aim of making its strong fields stronger and its large fields larger, while generating higher profits from highly profitable fields. Accordingly, the company has conducted a thorough review of operations in order to ensure sustainable growth of business, including within its professional division. It was alongside this strategic development Shiseido received an offer from L'Oréal, involving the proposal for the sale of Carita and Decléor activities and engaged in exclusive negotiations.
Going forward within the professional division, Shiseido will direct its focus on both Shiseido Professional, which is growing significantly in Asia including Japan and China, and Joico, which is expanding in the U.S. as well as in Europe, to make the most of its strength in the hair business area. In terms of region, the division looks forward to accelerating business deployment in Asia, where the professional hair care market is growing rapidly. Carita and Decléor, which have deployed skin care businesses, among others, mainly in Europe, are the brands that have strengths in the business area different from those of hair and Asia on which Shiseido will focus within its professional division. Accordingly, Shiseido determined it was best to sell the brands to L'Oréal and reached an agreement with L’Oreal to purchase Carita and Decléor activities. For the Shiseido Group, the professional division is a core business, next to cosmetics, and Shiseido will remain committed to becoming a leader in the professional industry in Asia.
Concerning the transaction, Shiseido released a statement saying, “Carita and Decléor have contributed to the strengthening of the presence and the improvement of the prestige image of the Shiseido Group. We have determined to sell the brands while undertaking rigorous efforts toward pursuing a strategy based on selection and concentration and we believe that it will be the best choice for both our company and the brands. Herewith, for the fiscal year 2014 and beyond, we will further accelerate growth to become a global player representing Asia with its origins in Japan."