The Asia ex-Japan division of Japanese skincare brand Fancl Corp is going up for sale, according to a Reuters report.
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Hong Kong’s Chris Chan, the owner of CMC Holdings and the Asia distributor of Fancl outside its domestic market Japan, has reportedly hired Morgan Stanley to commence sale proceedings that could ink the cosmetic company a $US1 billion for its 200 stores across Greater China and Southeast Asia.
The report said that under Morgan Stanley’s guide, Fancl Asia would hold a two-round auction with first-round bids expected by the end of September. The report added that parent Fancl Corp would not be involved in the sale, and current Asian distribution deals would not be affected by a change in ownership.
In the year 2018-19, Fancl Asia witnessed earnings before interest, taxes, depreciation, and amortization (EBITDA) of $60 million to $70 million, and is on track to record a similar figure, said Reuters. More recently, Fancl Corp in 2019 sold 30% of itself to brewer Kirin Holdings Co Ltd for $1.2 billion.
CMC Holdings has been Fancl’s sole distributor outside Japan for 25 years. The contract for China expires in six years, and in ten years time for the rest of Asia.
The news comes as Asia’s skincare market is expected to record 5% annual growth in the next five years, according to Euromonitor, with the region currently accounting for 53% of global skincare sales.
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Kenji Ikemori founded Fancl Corporation in 1981. Today, the company boasts several subsidiaries including Attenir Corporation, Fancl Asia, Fancl International, Fancl Lab and Nicostar Beautech.