J&J Makes Offer to Buy Japanese Cosmetics Firm Ci:z
Bloomberg
Johnson & Johnson (JNJ) - Get Report said Tuesday, Oct. 23, it was buying all the outstanding shares of Japanese cosmetics company Ci:z Holdings Co. it doesn't already own, as it tries to bolster its presence in Japan's skincare market.
J&J will pay 5,900 Japanese yen for each share, which values the deal at around ¥230 billion ($2.05 billion). The offer represents a premium of 55% to Ci:z's Tuesday closing price of ¥3,800.
The U.S. healthcare giant has owned 19.9% of Ci:z, whose brands include Dr.Ci:Labo, Labo Labo and Genomer line of skincare products, since July 2016.
The company's skincare portfolio is expected to strengthen J&J's market presence in Japan, and bolster its offering in science-based, efficacious dermocosmetic brands.
Johnson & Johnson is a holding in Jim Cramer's Action Alerts PLUS member club.
"Johnson and Johnson reported strong uptake from Dr. Ci Labo in its conference call last week, so a deal to gain ownership and expand the brand is right for the company," said Jeff Marks, senior portfolio analyst at Action Alerts PLUS.