Kao Corp., a major manufacturer of cosmetics, cleaning and sanitary products, said Saturday it has acquired London-based luxury cosmetics maker Molton Brown Ltd. for about 34 billion yen.
Kao has been expanding its luxury cosmetics business because its mainstay soap and shampoo businesses are slumping due to what it says are continued deflation and higher materials procurement costs.
The deal with the British firm marks Kao's first purchase of a luxury cosmetics maker.
Molton Brown, founded in 1973, sells luxury cosmetics and hair care products in more than 70 countries, including Japan. Its sales in the 2004 business year totaled 8.7 billion yen.
Kao bought all outstanding Molton Brown shares from its management and a British investment bank via a subsidiary in Britain.
Kao said it plans to sell cosmetics products based on its technology under the Molton Brown brand.