JAPAN. As predicted last week on The Moodie Report.com (12 July) Kao Corp has purchased UK beauty company and retailer Molton Brown, for £170 million (about ¥34 billion).
The business was purchased from Bridgepoint Capital, a European private equity fund, and the management team of Molton Brown. Kao acquired Molton Brown through its newly established UK subsidiary, Kao Prestige Limited.
In a statement the company said: “Through the Molton Brown acquisition, Kao will be able to gain increased access to the global health and beauty markets. In addition, Kao expects to achieve synergies in Kao’s beauty care businesses through coordination with Kao Brands Company”¦and KPSS – Kao Professional Salon Services.
“Kao believes that its global expansion in the prestige cosmetics business will lead to profitable growth.”
Founded in 1973, Molton Brown’s products are distributed in over 70 countries with an especially strong presence in leading department stores such as Harrods and Selfridges in the UK, Neiman Marcus and Nordstrom in the US, Barneys New York in Japan, as well as through stand-alone Molton Brown Emporia, a network of 37 Molton Brown-branded retail stores around the world that deal exclusively in Molton Brown products.
The company is also present in travel retail.
Molton Brown’s sales for the fiscal year 2004 were Â¥8.7 billion; its sales for fiscal 2005 are expected to be Â¥11.0 billion . Impacts of the acquisition on Kao’s sales and EBIT for the fiscal year 2005 are expected to be negligible.
Kao’s total sales for fiscal year 2004 were Â¥936.8 billion, of which Â¥78.2 billion was generated by prestige cosmetics.
MORE STORIES ON MOLTON BROWN
Kao Corp set to acquire Molton Brown – 12/07/05
World Duty Free: Passion plus partnership drives perfumery to new levels – 16/12/03
World’s first Molton Brown stand-alone airport store opens at Heathrow – 11/12/03
