L Catterton Asia Makes Strategic Investment in Ci FLAVORS

Partnership to Enhance New Brand Development and Accelerate International Expansion

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Dec 20, 2021, 21:00 ET

TOKYO, Dec. 20, 2021 /PRNewswire/ -- L Catterton, the largest global consumer-focused private equity firm, announced today that its Asia fund has made a strategic investment in Ci FLAVORS (or the "Company"), which owns Cosme Company, a leading multi-brand beauty and personal care company in Japan focused on haircare and skincare. The firm will partner with Ci FLAVORS' management team to bolster the Company's growth through strategic initiatives such as enhancing new brand development and accelerating international expansion.

Ci FLAVORS boasts a strong portfolio of products, particularly in the mid-end segment of the Japanese haircare market, which has been growing faster than other segments. These products are sold widely throughout the country, especially in drugstores, the dominant sales channel for segment.

Building on its success, Ci FLAVORS continues to expand its portfolio of 37 brands and deepen its presence in drugstores. Its products, which enjoy best-in-class customer reviews and repurchase rates, are regularly refreshed to resonate with consumers. Coupled with its strategic introduction of new brands and sizeable social media following, the Company's pipeline of attractive products positions it to further penetrate key channels. In addition, Ci FLAVORS has ventured abroad into 25 markets around the world, with a focus on China, where it is experiencing steady growth.

Ci FLAVORS President Yusaku Horiuchi commented, "We are excited about the next stage of our growth and believe L Catterton is the right partner for the journey ahead. As the experts in consumer investing, the firm brings in-depth understanding of the global beauty and personal care market. It has a proven track record of creating value and we look forward to leveraging its distinctive sector expertise and extensive network of industry contacts as we further enhance our portfolio, enlarge our international footprint, and enrich customers' experiences."

L Catterton has significant experience investing globally in the beauty and personal care space. Current and past investments in the space include ETVOS, ELEMIS, bliss, Intercos, Marubi, Cover FX, Function of Beauty, TULA, Sociolla, and MERIT.

"Ci FLAVORS has built a strong business, achieving a leading position in Japan and making inroads overseas," said L Catterton Asia Partner Taka Shimizu. "The mid-end segment of the country's haircare market has robust fundamentals and is expected to continue expanding, driven by consumers who are increasingly seeking innovative products in the space. Led by an experienced senior management team, the Company is poised to capture growth opportunities, and we are excited about its prospects."

L Catterton Asia Principal Ray Yamaguchi added, "We look forward to partnering with Ci FLAVORS and sharing our category insights and operating skills with the Company as it continues to strengthen its performance across sales channels and geographic markets. This investment reinforces Ci FLAVORS's position as it broadens its product suite, ramps up its global expansion efforts and thoughtfully develops more brands that consumers love."

As part of the partnership between L Catterton and Ci FLAVORS, LVMH Moët Hennessy Louis Vuitton Japan K.K. President Norbert Leuret will assist the Company as a Senior Advisor following the completion of the transaction.

About Ci FLAVORS

Ci FLAVORS is the holding company for Cosme Company, a leading multi-brand haircare and skincare company headquartered in Tokyo, Japan. Since its founding by its President Yusaku Horiuchi in 2011, Cosme Company has continually created and developed unique brands in keeping with its core value of "understanding customers' demands better than anyone else". Its major brands include its subsidiary ViCREA, Ltd.'s "&honey", an organic haircare brand that boasts nourishing and hydrating ingredients like honey and argan oil, and its subsidiary Stella Seed Co., Ltd.'s "8 THE THALASSO", a haircare brand with the concept of treating hair like skin, thoroughly moisturizing strands and scalp.

About L Catterton

With more than $30 billion of equity capital across its fund strategies and 17 offices around the world, L Catterton is the largest global consumer-focused private equity firm. Leveraging deep category insight, operational excellence, and a broad strategic network of relationships, L Catterton's team of nearly 200 investment and operating professionals support management teams around the world in building strong, category-leading brands. Since 1989, the firm has made over 250 investments in consumer businesses. For more information about L Catterton, please visit lcatterton.com.

CONTACTS

L Catterton

Julie Hamilton (U.S.)
Managing Director, Firm Communications
[email protected]
+1 203 742 5185

Bob Ong (Asia)
Vice President, External Relations
[email protected]
+65 6672 7619

SOURCE L Catterton