Japanese player Pola Orbis buys up skin care brand H20 Plus

By Simon Pitman

- Last updated on GMT

Related tags Brand Skin Brand management

Pola Orbis, a leading Japanese cosmetic company, has signed a definitive agreement to buy H20 Plus, a developer of marine-based luxury skin care and hair care products.

H20 Plus is headquartered in Chicago and is privately-owned by investment companies Cordova, Smart & Williams and New MainStream Capital, together with a group of senior managers, headed up Robert Seidl.

H2O plus has a significant and fast-growing global footprint, which currently extends to more than 2,000 prestige retail points of distribution in 22 countries, specifically in North America, Asia, Europe and Latin America.

The range includes a top-selling anti-aging line, skin care toners, moisturizers, eye care and brightening products, together with a comprehensive range of bath and body, and hair care products.

H2O has good brand recognition

“H20 Plus has a sharp brand identity and adds a distinct uniqueness to the Pola Orbis portfolio of seven brands," said Satoshi Suzuki, president and CEO of Pola Orbis.

"As Pola Orbis targets an increase in its presence in global markets in the mid-term management plan, and we believe a partnership with H20 Plus will be mutually beneificial.”

Pola Orbis says that the integration of the H2O skin care into its portfolio will not only strengthen its global business, but also provide significant synergies in the areas of research and development and marketing, as well as providing Pola Orbis with access to H2O’s distribution channels worldwide.

Acquisition aims to broaden global footprint

The acquisition of the skin care brand aims to trigger increased sales for the company. Currently it has an annual turnover $2bn (¥165.2bn), which the company is hoping will grow to $3bn by the year 2020, mainly by increasing the size of its international sales to approximately 20 percent of net sales.

Pola Orbis has a medium-term management plan to turn the business into a ‘highly profitable global entity’, which it says it wants to achieve by jointly investing in merger and acquisition opportunities as well as developing its two flagship brands, Pola and Orbis.

Citi has been appointed as the exclusive advisor on the project, while there is lawyer representation in both the US and Japan. The transaction is also subject to international regulatory approval, which is expected to conclude in July.

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