The Shiseido-OSEA deal is off for now, multiple sources told WWD.
As previously reported by WWD in July, Shiseido was said to be pursuing skin care brand OSEA and was close to signing a deal, although neither party commented publicly on the matter.
OSEA, which was founded by mother and daughter Jenefer and Melissa Palmer in 1996, derives its name — an acronym for ocean, sun, earth and atmosphere — from the seaweed blend and other botanicals it incorporates into its products. Shiseido executives believed it would be a good addition to its portfolio that is these days more focused on skin care, multiple sources told WWD.
After all, sources pegged the brand’s net sales at around $100 million annually, about an even split between retail and the brand’s website. It is available at Ulta Beauty, in addition to Nordstrom and smaller specialty retailers.
Now WWD has learned that the talks have ended.
A spokeswoman for Shiseido said: “As a matter of company policy, we do not comment on market rumors or speculation.” A representative for OSEA declined to comment, as did Vennette Ho of Raymond James, who is working with the brand to explore its deal options.
In August, Shiseido Co. Ltd.’s stock fell sharply one day after the Japanese beauty giant released first-half earnings that were weighed down by dampened demand in China and restructuring costs. On Thursday, its stock price was up 0.03 percent at 3,095 yen. The company, which is Japan’s largest beauty player and eighth largest in the world, joins the ranks of other industry players to be hit by stalled business in China.
One source said that two private equity companies that showed initial interest in OSEA could come back to the game.
