"Shampoo and Hair Pack Leader" ... Japan's Tsubaki Acquired by Bain Capital

Global private equity firm Bain Capital will acquire Japan’s Fine Today Holdings (HD) for 200 billion yen (1.8762 trillion won). Fine Today HD is a Japanese cosmetics company that owns popular hair care brands such as Tsubaki and Fino, as well as the skincare brand Senka, known for its Perfect Whip Cleansing Foam.

The Nihon Keizai Shimbun (Nikkei) reported on February 2 that Bain Capital has reached a final agreement on the acquisition terms with CVC Capital, a European asset management firm and the current controlling shareholder. In 2021, CVC Capital acquired Shiseido’s personal care business division, which included Tsubaki, for approximately 160 billion yen (1.501 trillion won), and established Fine Today HD.

Brands operated by Japan's Fine Today Holdings include the famous hair care brand Tsubaki and the skincare brand Senka. Fine Today HD.

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Fine Today HD has strengthened its management system by appointing external executives and has established itself as an independent company, separate from Shiseido. The company also focused on expanding into the Southeast Asian market, including acquiring Shiseido’s halal-certified factory in Vietnam. Nikkei reported, “CVC Capital plans to sell all of its shares and cooperate with Bain Capital’s acquisition process.”

Bain Capital plans to focus on expanding sales after the acquisition. Leveraging its investment experience in Japanese distribution companies such as York HD, which owns the Ito-Yokado supermarket chain, Bain Capital is expected to broaden Fine Today HD’s domestic sales network and utilize its global network to expand into overseas markets, including Southeast Asia.

CVC Capital decided to sell the company after repeated failures to go public. CVC Capital had planned to list Fine Today HD on the Tokyo Stock Exchange Prime Market in December 2024 but postponed the listing at the last minute. Subsequently, in the fall of last year, it reapplied for a listing on the Standard Market but withdrew the application. As it became difficult to recover its investment through an initial public offering (IPO), CVC Capital began sale negotiations with several global private equity firms, including Bain Capital, KKR, and Blackstone.

Nikkei analyzed that the repeated postponements of the listing were due to investor concerns over the company’s business in China. Ongoing tensions between China and Japan, as well as between the United States and China, have significantly impacted the company’s revenue structure, which relies heavily on its relationship with China, leading to failed listing attempts. Sales from the Chinese and Hong Kong markets account for about 40% of the company’s total revenue.

According to Nikkei’s analysis, Bain Capital will continue the growth strategy pursued under CVC Capital’s ownership. However, there is a possibility that mid-term management plans may be reviewed. Nikkei reported, “For now, the company will focus on sales in Japan and Southeast Asia, while keeping an IPO as one of the options to consider in the future.”

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