Johnson & Johnson looks to acquire Ci:z Holdings Co. Ltd for up to $2.05bn

Johnson & Johnson has agreed to acquire Japanese company Ci:z Holdings Co., Ltd., which focuses on the marketing, development and distribution of a broad range of dermocosmetic, cosmetic and skincare products.

The move follows a significant trend, where pharmaceutical companies have sought to expand their presence across Asia, which is becoming a hotbed of innovation, particularly within healthcare and cosmetics.

The business has provided an all-cash offer to acquire all outstanding shares and its affiliates for approximately ¥230bn. The acquisition will include the company's range of brands comprising Dr.Ci:Labo, Labo Labo and Genomer line of skincare products.

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The acquisition will strengthen Johnson & Johnson's market presence in Japan with key customers, and more broadly bolster its offering in science-based, efficacious dermocosmetic brands.

"Health and beauty consumers are actively seeking science-based innovation to improve their skin," said Jorge Mesquita, Worldwide Chairman, Johnson & Johnson Consumer. "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 commercialisation expertise."

The transaction will deliver a significant and immediate premium to the company's shareholders and enhance long-term growth and value creation of the Johnson & Johnson Consumer business. it will also be a springboard to build Johnson & Johnson Consumer's connected commerce capabilities by leveraging one of the largest customer relationship management databases for direct-to-consumer skincare and improve its retail presence through well-established distribution networks.

The tender offer is expected to close in the first quarter of 2019.