Johnson & Johnson will buy all outstanding shares of Japanese skincare firm Ci:z Holdings that it does not already own for $2.05 billion in cash. The acquisition will give J&J ownership of Dr.Ci:Labo, Labo Labo, and Genomer.

WHO: Ci:z Holdings Co., Ltd. is a Japanese company focused on the marketing, development, and distribution of a broad range of dermocosmetic, cosmetic, and skincare products. Johnson & Johnson is the world’s largest and most broadly based health care company.

WHY: Ownership of popular brands such as Dr.Ci:Labo, Labo Labo, and Genomer should help J&J strengthen its international innovation pipeline.

IN THEIR OWN WORDS: “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 maximize value creation for Johnson & Johnson’s Consumer business by bringing in an agile innovation model and rapidly accelerating sales through our global commercialization expertise.”

DETAILS:

• J&J is to acquire the company in an all-cash offer for all of the outstanding shares of the company not already held by Johnson & Johnson and its affiliates for approximately ¥230 billion.
• J&J will pay 5,900 yen per Ci:z share, a 55 percent premium over Tuesday’s closing price, and also acquire the shares owned by the Japanese firm’s founder Yoshinori Shirono.
• In July 2016, Cilag GmbH International, an affiliate of J&J, entered into a long-term strategic collaboration with the company to distribute the company’s brands outside of Japan. As part of this collaboration, Cilag acquired approximately 19.9% of the outstanding shares of the company.
• The tender offer is part of a series of transactions pursuant to which Johnson & Johnson intends to acquire all the outstanding shares of the company, including a separate transaction whereby Johnson & Johnson will acquire the shares of the company held by CIC Corporation, the ownership vehicle of the company’s founder, Dr. Yoshinori Shirono.