Acquisitions · Cosmetics
Shiseido buys dermatologist skincare brand Dr. Dennis Gross for $450 million
- Buyer
- Shiseido (Tokyo)
- Target
- DDG Skincare Holdings (Dr. Dennis Gross Skincare), New York
- Value
- $450M
- Status
- Completed. Shiseido Americas announced completion on February 5, 2024.
- Date
- 2023-12-22
Shiseido, through Shiseido Americas, agreed to buy 100% of DDG Skincare Holdings, owner of the Dr. Dennis Gross Skincare brand, for about $450 million in cash. The New York brand, founded by a dermatologist, had sales of about $80 million in 2022 and an estimated $94 million in 2023.
Why it matters
Shiseido is trying to rebalance away from a weak China travel-retail business, and a fast-growing U.S. dermatology brand adds profitable growth in the Americas.
The brand
The brand launched in 2000. It was founded by Dennis Gross, a dermatologist and former skin cancer researcher, and his wife Carrie Gross, who serves as chief executive. It became known for its Alpha Beta Daily Peels, which asked people to peel their skin every day.
The sellers
Before the sale, the founders owned about 49% and entities linked to the investment firm Main Post Growth Capital owned about 48%. Shiseido's board approved the deal on December 20, 2023, and the agreement was signed two days later.
How it fits
Shiseido said a doctor-led skincare brand fits next to its prestige brands SHISEIDO and Clé de Peau Beauté, as shoppers pay more attention to skin health.
Sources
Kakehashi M&A News home
