Lion Corporation acquires FERZEA and Encorn brand from Shiseido

If you are interested in Shiseido and their products, it is not easy for you to ignore information about recent agreement between this Japanese beauty company and the Lion Corporation.

According to this agreement, two of Shiseido’s brands now become a part of the Lion Corporation. They don’t belong to Shiseido anymore.

The acquisition of FERZEA and Encorn from Shiseido

Agreement between Shiseido and the Lion Corporation was made on 31 January 2019 and will effect from 31 July 2019. According to this agreement, Ferzea- the body care brand and Encorn – eczema and dermatitis cream brand don’t belong to Shiseido anymore.

Why does Lion Corporation decide this acquisition?

Lion Corporation acquire brands Ferzea & Encorn from Shiseido/ Ph:alphabeauty

It is due to Lion Corporation’s new management vision. They would like to become an advanced healthcare company. This agreement is on their medium –term management plan with purpose of achieving their main management vision.

Lion Corporation’s main brands are Bufferin - the antipyretic analgesics brand and Smile - the eye drop brand. However they also owns the acne treatment brand - Pair. In the future, Lion Corporation wants to expand market for dermatologic agents. It is reason why they make agreement with Shiseido. This helps Lion Corporation enhance their value in the market, improve their growth of aesthetics business.

How does this acquisition affect to financial results in 2019? As forecast, this move doesn’t impact to these results so much.

Agreement between Shiseido and Lion Corporation is not only a part of Lion’s strategy, but also in plan for growth of Shiseido. Shiseido would like to execute selection and concentration strategy for brands and business. This strategy is in Shiseido’s Vision 2020.

So, it can say that, it is a win-win agreement. Looking for the significant changes from both of these beauty brands in the future.

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