Kao buys out UK's lifestyle products maker Molton Brown

19 Jul '05

3 min read

Molton Brown's business has shown steady growth and high profitability over the past few years with annual sales growth in the double digits. Molton Brown's sales for the fiscal year 2004 were 8.7 billion yen and its sales for the fiscal year 2005 are expected to be 11.0 billion yen. Impacts of the acquisition on Kao's sales and EBIT for the fiscal year 2005 are expected to be negligible.

Kao began building its prestige cosmetics business overseas in Shanghai in 2004, following its entry into Hong Kong and Taiwan. The prestige cosmetics business has performed well with further opportunities for significant growth and expansion in each area.

Through the Molton Brown acquisition, Kao will be able to gain increased access to the global health and beauty markets. In addition, Kao expects to achieve synergies in Kao's beauty care businesses through coordination with Kao Brands Company (a Kao group company that distributes personal care products with Jergens, Bioré, Curél and John Frieda brands in Europe and the US), and KPSS - Kao Professional Salon Services GmbH (a Kao Group company that globally operates professional hair care business under Goldwell and KMS brands).

Kao believes that its global expansion in the prestige cosmetics business will lead to profitable growth.

Molton Brown Limited manufactures, wholesaler and retailer of luxury lifestyle products including skin care, hair care, bath & body care products

Since the launch of the first-ever high quality domestic toiletry soap in Japan in 1890, Kao Corporation has taken a consumer driven principle as its basic stance in engaging in business.

Despite changes in lifestyles, sense of values and market environment, the pursuit of Yoki-Monozukuri* to provide wholehearted satisfaction to global consumers and customers is the goal of each Kao Group member as well as the Company's driving force.

Kao Corporation

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