Japanese PE New Horizon acquires Kagayaku Cosmetics from Ant Capital

Japanese private equity firm New Horizon Capital announced that it has acquired all outstanding shares of local cosmetics firm Kagayaku Cosmetics for an undisclosed amount.

In a statement, New Horizon said it has acquired the 100 per cent stake in Kagayaku from Ant Capital Partners, which bought the Japan-based cosmetics producer in 2016. The firm said the acquisition was made through its third fund, NH-3.

Following the acquisition, New Horizon said Yukio Matsuki will continue to serve as Kagayaku’s president. The firm will also appoint new outside directors and corporate auditors to form the cosmetic firm’s organisational structure.

Founded in 2007, Kagayaku Cosmetics sells cosmetics, detergents, and toiletry products. Formerly known as Sojitz Cosmetics, the Osaka-headquartered offers skincare, makeup, body care, oral care, and hair care products.

New Horizon said it has chosen to acquire Kagayaku because it sees the company’s further growth through the development of the new market and expanding its long-established relationship with consumers.

New Horizon Capital is a top-tier Japanese PE fund targeting small- to mid-cap buyout deals, with approximately 17 years of experience and cumulative assets under management of ¥270 billion ($2.5 billion).

The PE firm, which was spun off from Phoenix Capital, has been managing three funds since its foundation and nine funds in total as Phoenix Capital and New Horizon.

New Horizon’s acquisition of Kagayaku comes as Japan’s cosmetics market is anticipated to grow at a compounded annual growth rate of 3.41 per cent until 2025 to $45.64 billion. In 2017, Japan’s cosmetics market reached nearly $24.37 billion, according to Goldstein Research.

In March, US global alternative asset manager Carlyle Group agreed to invest in Japanese cosmetics firm Tokiwa Corporation. Financial details were not disclosed but Carlyle said the equity for the transaction will come from Carlyle Japan Partners III, the group’s third buyout fund in Japan.

Established in 1948, Tokiwa is engaged in the research, development, and manufacturing of cosmetic products. It boasts more than 400 patents and is a supplier to beauty brands around the world.

Last year, US healthcare conglomerate Johnson & Johnson acquired all outstanding shares of Japanese skincare firm Ci:z Holdings Co Ltd that it does not already own for ¥230 billion ($2.05 billion) in cash. The deal gives the American company ownership of the Japanese firm’s popular brands such as Dr.Ci:Labo, Labo Labo and Genomer line of skincare products, will help it strengthen its international innovation pipeline.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.