Kao acquires Kanebo
This article was originally published in The Rose Sheet
Executive Summary
Japanese company purchases Kanebo for approximately $2.37 bil. (¥1=$.0084) in stock, Kao announces Dec. 16. Company will acquire $2.24 bil. in stock from Japan's Industrial Revitalization Corporation Jan. 31 and $132.6 mil. in stock from Kanebo in mid-February, firm notes. Acquisition aims to "create one of the world's foremost cosmetics business groups," according to Kao. Kanebo will become a wholly owned subsidiary but will remain an "independent organization" with no changes to management, Kao adds. Firm was in talks to buy Kanebo in 2004, but bowed out of negotiations, after which the company was taken over by government-run IRCJ (1"The Rose Sheet" March 1, 2004, In Brief and 2"The Rose Sheet" May 17, 2004, In Brief). Kanebo generated net sales of $1.3 bil. in the nine months ended Sept. 30, and is expected to achieve sales of $1.7 bil. for the year ended Dec. 31, Kao says...